SAR Oscillator Forex Scalping Trading Strategy

Scalping shouldn’t scare you regardless of the tales by some traders about how scalping can get you tied to positions unnecessarily.

Well, the truth is if you trade a proven and well tested scalping system, you’re evidently on track towards making consistent profits.

The SAR Oscillator forex trading strategy that we have designed is poised to do just that. Learn how to buy and sell with this powerful scalping strategy.

Chart Setup

MetaTrader4 Indicators: SAR_oscillator.ex4 (default setting), Sadukey.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute

Recommended Trading Sessions: Any

Currency Pairs: Any pair

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy in the market if the following chart or indicator pattern gets displayed:

  1. If the red boxes of the Sadukey.ex4 custom indicator forms somewhat below price bars as seen on Fig. 1.0, price is said to be pushed higher i.e. a signal to go long on the pair of interest.
  2. If the green histograms and black line of the SAR_oscillator.ex4 custom indicator aligns above the 0.00 signal level as depicted on Fig. 1.0, price is said to be pressured to the upside, hence a signal to enter a buy.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the following holds true:

  1. Watch out for blue box shape formations that will align somewhat above price bars during a bullish signal as a strong signal to weaning bulls pressures (refer to Fig. 1.0), hence an exit or take profit is advised.
  2. If the black line and red histogram of the SAR_oscillator.ex4 custom indicator align below the 0.00 signal level, it further supports our theory of halting bulls pressure, hence an exit or take profit is advised.

Sell Entry Rules

Initiate a sell entry if the following rules or conditions hold sway:

  1. If the blue boxes of the Sadukey.ex4 custom indicator form somewhat above price bars as shown on Fig. 1.1, price is said to be pushed lower, hence a trigger to go short on the pair of focus.
  2. If the red histograms and black line of the SAR_oscillator.ex4 custom indicator aligns below the 0.00 signal level as illustrated on Fig. 1.1, price is said to be pushed to the downside, hence a signal to go short on the pair of interest.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following indicator or chart patterns take precedence:

  1. Watch out for red box shape formations that will align somewhat below price bars during a bearish trend as a strong signal to weaning bears pressures (refer to Fig. 1.1), hence an exit or take profit is advised.
  2. If the black line and green histogram of the SAR_oscillator.ex4 custom indicator align above the 0.00 signal level, it further supports our theory of bears exhaustion in the market, hence an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The Sadukey.ex4 is a trend following indicator that is designed to detect trend via blue rectangular dots that suggests sell alerts while the red colored rectangular dots are meant to define bullish signals.

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 indicator is also laced with the same values.