SAR HAMA Oscillator Forex Trading Strategy
Often times we find traders “system-hopping” a term that denotes market participants who repeatedly change their trading technique.
Traders do this when their current system isn’t offering them the much needed results.
The SAR HAMA Oscillator forex trading strategy is designed to help you trade with the most profitable currency trend. It works for any currency pair and any time frame.
To make this possible, we added the SAR_oscillator.ex4 and HAMA_.ex4 custom indicators, two very important technical trading tools that will aid us in defining trend power and direction respectively.
MetaTrader4 Indicators: HAMA_.ex4 (Default Setting), SAR_oscillator.ex4 (Inputs Variable Modified; pass=0.06, max=0.1)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a buy order if the following indicator or chart pattern gets put on display:
- If the royal blue rectangular shaped bodies of the HAMA_ custom MT4 indicator gets placed slightly below the candlesticks as shown on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the designated fx pair.
- If the black line and green histograms of the SAR_oscillator custom indicator gets aligned somewhat above the 0.00 level, it is a trigger to buy the selected currency pair.
Stop Loss for Buy Entry: Place stop loss below support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit if the following rules or conditions takes precedence:
- If a red rectangular shaped body of the HAMA_ custom indicator gets put on display on the activity chart (see Fig. 1.0), an exit or take profit is recommended.
- If the black line of the SAR_oscillator custom indicator dip below the 0.00 level as depicted on Fig. 1.0, an exit or take profit is advised.
Sell Entry Rules
Enter a sell order if the following holds true:
- If the red rectangular shaped bodies of the HAMA_ custom MT4 indicator gets placed slightly above the candlesticks as illustrated on Fig. 1.1, price is said to be driven lower i.e. a trigger to sell the currency pair of interest.
- If the black line and red histograms of the SAR_oscillator custom indicator gets aligned somewhat below the 0.00 level, it is a trigger to sell the forex pair of focus.
Stop Loss for Sell Entry: Place stop loss above resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes to the fore:
- If a blue rectangular shaped body of the HAMA_ custom indicator gets put on display on the activity chart (refer to Fig. 1.1) during a bearish alert, an exit or take profit is advised.
- If the black line of the SAR_oscillator custom indicator surges above the 0.00 level as shown on Fig. 1.1, an exit or take profit will suffice.
Sell Trade Example
About The Trading Indicators
The HAMA_ indicator deploys a 2-color visualization (red and royal blue) scheme to deliver sell and buy signals respectively.
The SAR_oscillator.ex4 custom indicator simply put is a Parabolic SAR in the form of an oscillator.
Just like the original Parabolic SAR (0.02, 0.20), the SAR_oscillator.ex4 MT4 indicator is also laced with the same values.