Best Trend Following Indicators Combination

Here’s a detailed guide on the best trend-following indicator combinations, including how they complement each other, their strengths, and practical use cases. These combinations are widely used by professional traders to confirm trends and avoid false signals.


Best Trend Following Indicator Combinations


Combination 1 – Super Trend + ADX
IndicatorRole
Super TrendGenerates buy/sell signals based on price crossing the ATR-based trend line.
ADXConfirms if the trend is strong enough to act upon.
How it works:
  1. Entry Rule:
    • Price crosses above the Super Trend → bullish signal.
    • Check if ADX > 25 → confirms a strong trend.
  2. Exit Rule:
    • Price crosses below the Super Trend → exit or short.
    • ADX falling below 20 → trend losing strength.
Use case:
  • Avoids false signals during choppy markets.
  • Helps traders only act when both a trend and momentum are confirmed.
  • Works for swing trading and position trades.

Combination 2 – Moving Averages (50 EMA & 200 EMA) + Super Trend
IndicatorRole
50 EMA / 200 EMAIdentifies overall trend direction and key support/resistance.
Super TrendFine-tunes entry points in the direction of the main trend.
How it works:
  1. Entry Rule:
    • 50 EMA is above 200 EMA → confirms bullish environment.
    • Price crosses above the Super Trend → entry signal aligned with trend.
  2. Exit Rule:
    • Price falls below Super Trend → exit.
    • 50 EMA crosses below 200 EMA → trend reversal, close positions.
Use case:
  • Helps align trades with the longer-term trend while entering at optimal points.
  • Used by both traders and investors for trend-based strategies.

Combination 3 – Ichimoku Cloud + ADX
IndicatorRole
Ichimoku CloudDefines trend direction, support, resistance, and momentum.
ADXConfirms strength of the trend indicated by Ichimoku signals.
How it works:
  1. Entry Rule:
    • Price is above the cloud → bullish trend.
    • ADX > 25 → confirms trend strength.
  2. Exit Rule:
    • Price closes below cloud → trend weakening.
    • ADX falling below 20 → exit or reduce exposure.
Use case:
  • Provides a multi-layered trend confirmation.
  • Filters out weak signals that look bullish but lack momentum.

Combination 4 – Moving Averages + CCI
IndicatorRole
Moving AveragesIdentify direction of the overall trend.
CCIDetects momentum shifts early within the trend.
How it works:
  1. Entry Rule:
    • Price above 200 EMA → bullish trend.
    • CCI crosses above +100 → momentum confirms bullish entry.
  2. Exit Rule:
    • CCI crosses below zero → momentum fading.
    • Price falls below moving average → exit or reduce exposure.
Use case:
  • Captures trend continuation opportunities.
  • Allows early entries before the full trend unfolds.

Combination 5 – Super Trend + RSI
IndicatorRole
Super TrendProvides trend direction and entry signals.
RSIMeasures overbought/oversold momentum to filter entries.
How it works:
  1. Entry Rule:
    • Price crosses above Super Trend → bullish.
    • RSI between 40–60 → confirms a sustainable trend without exhaustion.
  2. Exit Rule:
    • RSI crosses above 70 → take profit or tighten stops.
    • Price falls below Super Trend → exit.
Use case:
  • Avoids trades that are already extended and at risk of reversal.
  • Helps traders enter trends early while managing risk.

Key Considerations for Trend Following Combinations

Confirm before acting: Use ADX or RSI to ensure the trend has strength.
Filter noise: Combine lagging indicators (like moving averages) with momentum tools (like CCI or RSI).
Avoid whipsaws: Trend confirmation helps prevent entering during sideways markets.
Adjust by timeframe:

  • Longer timeframes (daily, weekly) → Moving Averages + ADX or Ichimoku Cloud.
  • Shorter timeframes (4H, 1H) → Super Trend + RSI or CCI.
    Risk management: Volatility indicators like ATR can fine-tune stop-losses.

✅ Final Recommended Combination – Super Trend + ADX + Ichimoku Cloud

This trio gives:

  1. Clear trend direction (Ichimoku).
  2. Entry signals based on price action (Super Trend).
  3. Trend strength confirmation (ADX).

It’s a robust setup used by professional traders to:

  • Enter high-probability trades.
  • Avoid fake breakouts.
  • Adjust positions based on trend strength.

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