The Ultimate Oscillator and the Supertrend indicator are powerful tools on their own. But when you combine them, you can significantly boost your trade accuracy, reduce false signals, and maximize your profits.
In this guide, you’ll learn exactly how to use the Ultimate Oscillator and Supertrend together to build a simple but highly effective trading strategy.
🔍 Why Combine Ultimate Oscillator and Supertrend?
Both indicators offer different strengths:
| Indicator | Strengths |
|---|---|
| Supertrend | Trend-following, clear buy/sell signals |
| Ultimate Oscillator | Momentum detection, early reversal signals |
✅ Supertrend shows the overall trend direction.
✅ Ultimate Oscillator detects momentum shifts within that trend.
By combining them:
- You trade with the trend (Supertrend)
- You time your entries and exits better (Ultimate Oscillator)
📈 The Strategy Setup
Here’s how to set it up:
1. Add Indicators to Your Chart
- Supertrend Indicator: Use default settings (ATR 10, Multiplier 3)
- Ultimate Oscillator: Use default settings (7-14-28 periods)
Available on platforms like TradingView, MT5, and Thinkorswim.
2. Entry Rules
✅ Buy Setup (Go Long):
- Supertrend is green (uptrend).
- Ultimate Oscillator is rising and crosses above 50 or bounces from 30.
- (Optional extra confirmation: Price breaks minor resistance.)
✅ Sell Setup (Go Short):
- Supertrend is red (downtrend).
- Ultimate Oscillator is falling and crosses below 50 or reverses from 70.
- (Optional extra confirmation: Price breaks minor support.)
3. Exit Rules
- Close trade when Supertrend flips in opposite direction.
- Or exit at a fixed Risk:Reward ratio (example 1:2).
🧠 Example Scenario (Buy Trade)
- Supertrend flips to green → Uptrend confirmed.
- Ultimate Oscillator dips near 30 and starts rising → Momentum building.
- Enter long trade.
- Exit when Supertrend turns red or UO shows bearish divergence.
✅ A high-probability setup aligning trend + momentum.
🎯 Best Timeframes to Use
| Trading Style | Best Timeframes |
|---|---|
| Scalping | 5-min, 15-min |
| Intraday | 15-min, 30-min |
| Swing Trading | 1-hour, 4-hour |
Always adjust your position sizing based on timeframe and volatility.
⚡ Advantages of Combining UO and Supertrend
✅ Fewer false breakouts
✅ Higher quality entries and exits
✅ Clear, rule-based system
✅ Works across stocks, forex, crypto, commodities
🛑 Common Mistakes to Avoid
| Mistake | Solution |
|---|---|
| Trading against Supertrend color | Always follow the Supertrend direction |
| Entering without UO confirmation | Wait for UO to cross 50 or bounce from 30/70 |
| Overtrading mid-range setups | Focus on strong signals only |
✅ Final Thoughts
Combining the Ultimate Oscillator with Supertrend gives traders the best of both worlds:
- Trend direction clarity
- Momentum shift detection
It’s a simple, powerful, and high-probability strategy that can work across multiple markets and timeframes.
Master this combo, and you’ll gain a major edge in your trading game!
✅ FAQs: Combining Ultimate Oscillator and Supertrend
1. Can I use this combination for forex trading?
Yes! It works very well for forex, stocks, crypto, and commodities.
2. What Ultimate Oscillator settings work best?
The default 7-14-28 settings are a good starting point. Adjust if needed based on your timeframe.
3. Should I always wait for UO to confirm Supertrend signals?
Yes. Confirmation greatly reduces false trades.
4. Can I use this strategy on mobile apps?
Yes, apps like TradingView Mobile and Thinkorswim Mobile support both indicators.
5. What’s the win rate of this strategy?
It depends on the asset and timeframe, but properly combined, win rates above 60% are achievable with good risk management.
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- Ultimate Oscillator Trading Strategies That Actually Work
- Best Supertrend Apps for Mobile Traders in 2025
- How to Customize Supertrend Settings for Maximum Accuracy
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