Parabolic SAR and MACD Forex Swing Trading Strategy
This swing trading strategy uses two indicators, and these are the parabolic SAR and the MACD. This strategy is comprehensive and great for new traders. This is applicable to any currency pairs.
Trading Rules:
- MACD line must cross over.
- Parabolic SAR must switch position on the chart.
- Place a buy stop or sell stop order above the high or low of the candlestick at the point where both the MACD and parabolic SAR confirm trade entry signal.
- Place stop loss 5- 30 pips below the low or above the high of that candlestick, but this depends on the timeframe. Large stop loss may be a bit larger.
- To exit the position or take profit, the opposite trade entry signal must appear.
ADVANTAGES:
- Very simple and easy to spot trade setups.
- Can gain huge profit.
DISADVANTAGES:
- Frequent stop out can happen during ranging or consolidation market.
- The MACD & Parabolic SAR are both lagging indicators, it means that the market has already made a big move before the signal appears.
- If you place your stop losses quite close, you may get stopped out frequently.
Recommended MT4 Broker
XM Broker
- Free $50 To Start Trading Instantly! (Withdraw-able Profit)
- Deposit Bonus up to $5,000
- Unlimited Loyalty Program
- Award Winning Forex Broker
- Additional Exclusive Bonuses Throughout The Year
- Exclusive 50% Cash Rebates for all Trades!
Already an XM client but missing out on cashback? Open New Real Account and Enter this Partner Code: 𝟕𝐖𝟑𝐉𝐐
Click here below to download:
So, while benefiting from this indicator is crucial, ensuring successful trades and reaping rewards requires continuous training with enhanced strategies. Don’t worry, we’re here to help.
We are a team of dedicated individuals, including a work-from-home dad and passionate forex trader, committed to helping you succeed in the forex market. As the driving force behind ForexMT4Indicators.com, we share cutting-edge trading strategies and indicators to empower you on your trading journey. By working closely with a team of seasoned professionals, we ensure that you have access to valuable resources and expert insights to make informed decisions and maximize your trading potential.
Want to see how we can transform you to a profitable trader?
>> Join Our Premium Membership <<
Benefits You Can Expect
- Gain access to a wide range of proven Forex strategies to make informed trading decisions and increase profitability.
- Stay ahead in the market with exclusive new Forex strategies and tutorials delivered monthly to continually enhance your trading skills.
- Receive comprehensive Forex training through 38 informative videos covering various aspects of trading, from using the MT4 Metaquotes platform to leveraging indicators for improved trading performance.