SMA And Parabolic SAR Forex Scalping Strategy
This is a scalping strategy that follows the trend. This is represented by the SMA or simple moving average and the parabolic SAR indicators. Use this system during London session. This kind of strategy works on a 1-minute timeframe and is useful to major currency pairs with low spread.
Forex Indicators:
- Parabolic SAR indicator with default setting: Step 0.02, Maximum 0.2
- Simple moving average (SMA), period 50, close
- ATR Ratio
Long Entry:
- ATR ratio indicator is greater than 1.
- The price must go above the SMA 50.
- The parabolic SAR has to move above the market price.
- Open long position when the parabolic SAR will appear below the market price.
Short Entry:
- ATR ratio indicator is greater than 1.
- The price must go below the SMA 50.
- The parabolic SAR has to move above the market price.
- Open short position when the parabolic SAR appears above the market.
Exit Position:
- Place stop loss at 12-15 pips below the entry price.
- Take profit at 7 pips above or below the entry price.
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