SAR Oscillator Cloud Forex Trading Strategy

Retail traders are continually seeking new ways in which they can make money online and this can it made increasingly easy when traders start by learning how to trade.

Frustration will certainly kick in when you’re not properly educated on how to trade efficiently.

The SAR Oscillator Cloud Forex Trading Strategy is designed to keep you trading in the profitable direction of the trend, while minimizing your losses.

The whole setup is achieved by deploying the ForexCloud and SAR_oscillator custom indicators in a way that defines trend strength and price momentum respectively.

Chart Setup

MetaTrader4 Indicators: ForexCloud.ex4 (Inputs Variable Modified; TimeFrame=H4), SAR_oscillator.ex4 (Inputs Variable Modified; pas=0.005)

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

Download

Download the SAR Oscillator Cloud Forex Trading Strategy

Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Initiate a buy entry if the following indicator or chart pattern gets put on display:

  1. If the lime cloud of the ForexCloud custom indicator gets aligned somewhat below the candlesticks as depicted on Fig. 1.0, price is said to be driven higher i.e. a trigger to buy the designated currency pair.
  2. If the black line and green histograms of the SAR_oscillator MT4 indicator break above the 0.00 level as shown on Fig. 1.0, the overall market sentiment is said to be bullish, as such a buy alert is imminent.

Stop Loss for Buy Entry: Place stop loss below short-term support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes precedence:

  1. If a red cloud of the ForexCloud custom indicator forms within the activity chart during a buy signal, price is said to be making a U-turn away from its earlier stance, hence an exit or take profit is duly advised.
  2. If the black line of the SAR_oscillator custom indicator break below the 0.00 level during a bullish trend, it is indicative of weaning bulls power, hence an exit or take profit will suffice.

Sell Entry Rules

Enter a sell order if the following holds sway:

  1. If the red cloud of the ForexCloud custom indicator gets aligned slightly above the candlesticks as exemplified on Fig. 1.1, price is said to be pushed lower i.e. a trigger to sell the selected forex pair.
  2. If the black line and red histograms of the SAR_oscillator MT4 indicator break below the 0.00 level as seen on Fig. 1.1, the general market sentiment is said to be bearish, as such a sell alert is looming.

Stop Loss for Sell Entry: Place stop loss above short-term resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes to the fore:

  1. If a lime cloud of the ForexCloud custom indicator forms within the activity chart during a sell alert, price is said to be making a U-turn away from its earlier bearish stance, hence an exit or take profit is duly recommended.
  2. If the black line of the SAR_oscillator custom indicator surge above the 0.00 level during a bearish trend, it is indicative of halting bears power, hence an exit or take profit will do.

Sell Trade Example

Fig. 1.1

Free Download

Download the SAR Oscillator Cloud Forex Trading Strategy

About The Trading Indicators

The ForexCloud.ex4 resembles a cloud the way it sits itself above or below price bars, offering an overall market direction.

When the cloud is red and sits above price bars, it denotes a bearish trend, while it denotes a bullish trend when it is green and sits below price bars.

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 indicator is also laced with the same values.