Parabolic SAR Trading Strategy

Parabolic SAR Forex Trading Strategy - A rather risky system based on the direct signals of the Parabolic SAR indicator, which shows stop and turn levels.

feature

It can be easily followed.

Only one standard metric is used.

Indicators directly send out incoming and outgoing signals.

The indicator is delayed.

The risk is high, but it is not always effective.

policy settings

It can be used for any currency pair and time frame.

Add a Parabolic SAR indicator to the chart, setting the minimum unit to 0.05 and the maximum to 0.2.

approach conditions

When the market price hits the indicator from below, enter the market and go long, at which point the trend will change direction.

When the market price hits this indicator from above, enter the market and go short, at which point the trend will change direction.

exit conditions

Set stops directly at the indicator level - bears are below the price and bulls are above it. Adjust the stop loss level every day.

Take Profit should be set to the same value as Stop Loss, but no adjustment is required.

example

You can see five entry and exit points in the example icon above:

The first is bearish and will be able to profit.

The second is long, with profit-taking positions squaring.

The third one is also bearish and will soon reach the profit level.

The bullish trade reached its target after two candlesticks.

Another short-term trade, slowly descending to profitable levels.

Based on the above information, it is easy to conclude that short and long positions always follow each other in this strategy. You can also see that while profit levels help make most trades profitable, they also prevent these trades from reaching their full potential.