Strategy Forex Parabolic SAR + Stochastic demand from you a minimum of 2 very important qualities of a professional Forex traders:
1) ability to wait without closing the bargain before time
2) “concrete nerves” or in other words, resistance to price jumps in the market.
- To recommend to choose a broker trade center with Metatrader 4
The recommended interval — from H1 and above. For trade to the selected currency pair chart, which can be any, to establish:
1) Indicator Parabolic SAR (step 0,01% max 0,2)
2) stochastic oscillator (7, 10, 4) to level 63 and 37
3) Exponential Moving Average EMA (100) — indicates the main direction, which will open the transaction.
Conclude a deal to buy if the same 3 tones:
1) the red line Stochastics rose above its level 63
2) Parabolic Indicator (PSAR) “jumps” on price
3) Previous candle was closed over the exponential moving average EMA (100)
Stop-loss should be set under the red dot indicator PSAR-or at least be at a distance of 100 points. Next stop-loss should be deferred, under the new points, as they drawing.
The deal closes, if you notice a pattern reversal “Dodge” or after the return signal indicator PSAR. And just possible option to close the deal on the trailing stop (its value should be selected in depending from the time-frame and currency pair).
For SELL — opposite conditions, but Stochastics should close below 37.
Download a template for Metatrader 4 (it must first extract) — psar_stoch.tpl