The Parabolic SAR Foreign exchange strategy is a comparatively risky system that is established on the straightforward signals of the Parabolic SAR indicator, which indicates stop and opposite levels.
- Easy to follow
- One and only standard indicator is utilized.
- Indicator move slowly.
- Partially risky and not always very effective.
- All currency pair and lapse of time should work.
- Include a Parabolic SAR indicator to the diagram; establish its step to 0.05 and highest to 0.02.
The Entry Conditions
Introduce the long position when the present price hits the indicator from beneath and it shifts its direction.
Introduce short position when the present price hits the indicator from beyond and it shifts its direction.
The Exit Conditions
Establish stop-loss precisely at the indicator’s most recent level – beyond the cost for short positions and beneath the cost for long positions. Alter stop-loss with each recent bar.
Take-gain should be established to the same market price as stop-loss, but should not alter it. For instance, if your short exchange entry level is 1.1030, and stop-loss is established to 1.1050 (20 pips), your take-gain level should be settled to 1.1010 (same 20 pips).
As you can see on the instance diagram above, there are five entry and exit points:
- The first one is blunt and moves to a take-gain.
- The second one is very long and is likewise closed by TP.
- The next one is blunt again and moves TP rather rapid.
- Vigorous exchange that moves its target in fair two candles.
- Another short exchange, moderately proceeding down to its take-gain level.
Reaching a conclusion from the above diagram it is simple to conclude that short and long positions constantly follow each other in this strategy. You can also notice that even though take-gain assists to hold many forex traders in the green, it also prohibits those traders from achieving their complete potential.
Utilize this strategy at your own risk. WindsorForex.com can’t be responsible for any losses associated with using any strategy presented on the site. It’s not recommended to use this strategy on the real account without testing it on demo first.