Parabolic SAR Forex Trading System
Trading Systems Last update: August 15, 2024The Parabolic SAR Forex Trading System is a channel strategy with Parabolic SAR dots for entries. It’s supported with the Escalda Indicator to filter a trend direction. That forex strategy utilizes a swing trading approach, but in direction of an overall trend.
How to trade with the Parabolic SAR Forex Trading System?
The Parabolic SAR Forex Trading Strategy consists of a three main indicators, which are the following:
- Parabolic SAR: the Parabolic SAR indicator provides “Stop and Reverse” dots that are aligned above/below price. Trades are triggered by a switch of these Parabolic SAR dots.
- Besar 01: this is the channel indicator with red bands. These bands define take profit targets. There is also a gray middle-line.
- Escalda: it is a trend-direction filter. It has 4 rows of blue/red dots. Ideally, they all should be blue for a buy trade or red for a sell trade.
Buy Signal
Follow these steps for a long trade:
- Channel slope is upwards
- Price touches lower band of the Bescar 01
- Parabolic SAR dots switch to below price (blue dots)
- Escalda dots are blue (not mandatory)
- Buy trade is triggered after the above conditions are met
- Set stop loss a few pips below the Parabolic SAR dot at the triggering candle
- Take profit or exit trade whenever the price hits opposite band of the channel or use your own preferred method of trade exit
Sell Signal
Follow these steps for a short trade:
- Channel slope is downwards
- Price touches upper band of the Bescar 01
- Parabolic SAR dots switch to above price (red dots)
- Escalda dots are blue (not mandatory)
- Sell trade is triggered after the above conditions are met
- Set stop loss a few pips above the Parabolic SAR dot at the triggering candle
- Take profit or exit trade whenever the price hits opposite band of the channel or use your own preferred method of trade exit
