Parabolic SAR strategy with

Example

Forex Trading Strategy with the Parabolic SAR - a somewhat risky system that is based on direct signal indicator Parabolic SAR (Parabolic SAR), which shows the levels of stop and reverse the trend.

Features

• It is easy to use.
• Only one standard indicator.
• Conditions of entry and exit are given by the indicator.
• The delay indicator.
• It is very risky and not always profitable strategy.

Preparations for the trade

1. Any currency pair and timeframe.
2. Add Parabolic SAR indicator on the chart, setting step (step) 0.05 and a maximum of 0.2.

Conditions of entry

• Enter into a long position when the current price touches the bottom and the display will change its direction.
• Enter a short position when the current price touches the indicator at the top and that will change its direction.

Conditions of Release

• Place a stop loss directly to the indicator level - above the current price for short positions, and lower - for long. Adjust the stop-loss order with the arrival of each new bar.
• Take-profit set of the same size as the stop-loss, but not change it.

As can be seen in the chart above, in Example 6 entry points. The first - the bull and leads to profits. The second - and also bear up TP. Third - the bull and leads to losses, as well as a fourth, which is bearish. The fifth position is less than TP, but closes with a small loss, it is - a bull. Sixth - a short position, which has already reached the recommended levels of TP.

Judging from the above example, we can conclude that the short and long positions always follow one another in this strategy and that it is not very reliable.

Attention!

Use this strategy at your own risk. EarnForex.com not responsible for any damages that may result to you when using any strategy presented on the site. It is not recommended to use this strategy on a real account without testing it to start a demo account.