Super Parabolic SAR Forex Trading Strategy

The Super Parabolic SAR forex trading strategy is a profitable trend-following momentum strategy that works on any currency pair.

The role of the Parabolic SAR trading indicator is to define new market trends and spot exhaustion in the market respectively.

Read on and learn how you can spot tradable buy and sell setups with this free strategy:

Chart Setup

MetaTrader4 Indicators: Non_Repainting_SuperTrend.ex4 (Default Setting), Parabolic SAR ex4 (Parameters Modified; Step=0.005, Style=Magenta), MMR ex4 (Default Setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any (London, New York, Tokyo)

Currency Pairs: Any pair

Download

Download the Super Parabolic SAR  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 blue upward pointing arrow and dotted line of the Non_Repainting_SuperTrend.ex4 custom indicator gets aligned below the candlesticks as seen on Fig. 1.0, price is said to be taken higher i.e. a trigger to buy the stipulated currency pair.
  2. If the magenta dots of the Parabolic SAR MT4 indicator gets spotted below price bars as shown on Fig. 1.0, the market sentiment is said to be bullish i.e. a trigger to buy the selected currency pair.
  3. If the dodger blue line of the MMR custom indicator breaks above the 0.00 level as depicted on Fig. 1.0, a buy signal will suffice.

Stop Loss for Buy Entry: Place stop loss below support or below the PSAR dots.

Exit Strategy/Take Profit for Buy Entry

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

  1. If the Non_Repainting_SuperTrend.ex4 custom indicator displays a red downward pointing arrow while a buy signal is running, it is a trigger to exit or take profit at once.
  2. If the magenta dots of the Parabolic SAR MT4 indicator readjust to form above price bars during a buy signal (refer to Fig. 1.0), an exit or take profit is duly advised.
  3. If the dodger blue line of the MMR custom indicator is seen to dive below the 0.00 level during a bullish signal, an exit or take profit will do.

Sell Entry Rules

Enter a sell order if the following holds true:

  1. If the red downward pointing arrow and dotted line of the Non_Repainting_SuperTrend.ex4 custom indicator gets placed above the candlesticks as illustrated on Fig. 1.1, price is said to be driven lower i.e. a trigger to sell the forex pair of focus.
  2. If the magenta dots of the Parabolic SAR MT4 indicator gets aligned above the candlesticks (check Fig. 1.1), the overall sentiment is said to be bearish i.e. a trigger to sell the designated currency pair.
  3. If the dodger blue line of the MMR custom indicator breaks below the 0.00 level as seen on Fig. 1.1, a sell entry is the right line of action to take.

Stop Loss for Sell Entry: Place stop loss above resistance or above the PSAR dots.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the Non_Repainting_SuperTrend.ex4 custom indicator displays a blue upward pointing arrow while a sell signal is ongoing, it is a trigger to exit or take profit forthwith.
  2. If the magenta dots of the Parabolic SAR MT4 indicator readjust to form below price bars during a sell signal as shown on Fig. 1.1, an exit or take profit is duly recommended.
  3. If the dodger blue line of the MMR custom indicator is seen to break above the 0.00 level during a bearish signal, an exit or take profit is advised.

Sell Trade Example

Fig. 1.1

Free Download

Download the Super Parabolic SAR  Forex Trading Strategy

About The Trading Indicators

The Non_Repainting_SuperTrend.ex4 custom indicator was designed by Rajandran – Founder of Marketcalls.

It is a stable version of the SuperTrend indicator.

The Parabolic SAR is a technical indicator that was created the renowned technician Welles Wilder, and is used by a lot of traders to gauge the direction of an asset’s momentum.

The indicator is depicted by series of dots that are placed either above or below an assets candlestick on its chart.

The MMR is an awesome indicator for technical analysis.

It combines a strategy that is based on MA crossover along with RSI and MACD.

Traders can deploy the indicator in identifying new trends, locating oversold and overbought sessions.