Advanced Swing Trading Setups:
Praveen Dubey (SEBI Registered RA)
SP RESEARCHVIA PVT. LTD. (INH000015808)
Combining Trend Following and Trend Strength Indicators
Using a single technical indicator often leads to false signals in sideways markets. By combining a trend-following indicator (Supertrend) with a trend-strength indicator (ADX), traders can filter out false breakouts.
How do you trade using ADX and Supertrend?
Enter a long position when the Supertrend turns green (buy signal) AND the ADX line rises above 25, confirming a strong trend. If ADX is below 20, the market is rangebound, and Supertrend signals should be avoided.
Position Sizing Guidelines
Never risk more than 1% of your total trading capital on a single technical setup. Place your stop-loss slightly below the Supertrend line and adjust it as the trend progresses.
Written by Praveen Dubey
Chief Research Analyst | SEBI Reg: INH000015808
Statutory Warning & Risk Disclaimer: Investment in securities market is subject to market risks. Read all related documents carefully before investing. Registration granted by SEBI and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. Content provided on this blog is for informational and educational purposes only.