109# SuperTrend & StochRSI Trading Strategy: A Powerful Combination

Submit by Dimitri 2025

SuperTrend & StochRSI Trading Strategy: combining trend-following indicators with momentum oscillators can lead to highly effective trading strategies. One such approach is the combination of SuperTrend and Stochastic RSI (StochRSI). This strategy aims to capture high-probability trading opportunities by aligning market trends with overbought and oversold conditions. In this article, we will explore the logic behind the strategy, its rules, and how it can be implemented in trading.

SuperTrend & StochRSI Trading Strategy: A Powerful Combination

Understanding the Indicators

1. SuperTrend Indicator

The SuperTrend indicator is a trend-following tool that provides buy and sell signals based on volatility. This strategy utilizes three different SuperTrend settings:

Fast SuperTrend: (10-period, factor 1)
Medium SuperTrend: (11-period, factor 2)
Slow SuperTrend: (12-period, factor 3)

The medium SuperTrend line serves as the stop-loss level and a key confirmation factor for entries.

2. Stochastic RSI (StochRSI) - Buy & Sell Signals Only

StochRSI is an oscillator that identifies overbought and oversold conditions, triggering buy and sell signals:

A StochRSI cross above 20 generates a Buy signal.
A StochRSI cross below 80 generates a Sell signal.

Trading Rules

Long Trade (Buy) Criteria:

StochRSI generates a Buy signal (cross above 20).
The medium SuperTrend line is below the closing price.
Stop-loss is placed at the medium SuperTrend line.
Take-profit is set at 1:1 to 1:1.2 times the stop-loss distance.

Short Trade (Sell) Criteria:

StochRSI generates a Sell signal (cross below 80).
The medium SuperTrend line is above the closing price.
Stop-loss is placed at the medium SuperTrend line.
Take-profit is set at 1.5 times the stop-loss distance.

Implementation & Backtesting

This strategy can be implemented in TradingView using Pine Script, allowing for automated backtesting and optimization. Traders may fine-tune the SuperTrend and StochRSI settings to better suit different market conditions and asset classes.

Conclusion

The combination of SuperTrend and StochRSI provides a structured approach to trading, filtering trades based on trend direction and momentum shifts. While no strategy guarantees success, proper risk management and parameter optimization can enhance profitability. Consider backtesting and paper trading before applying it to live markets.