Parabolic SAR + MACD
Last updated
Last updated
Indicators:
(0.02, 0.2)
(12, 26, 9, close)
Key conditions:
The strategy is applied to currency pairs during periods of stable volatility. The applicable timeframes are M30, H1, and H4. The primary indicator is the MACD, while the Parabolic SAR is optional. A dynamic stop loss ranging from 5 to 30 points based on the key bar's minimum or maximum is recommended.
BUY conditions (all conditions must be met):
the intersection of the MACD line and the MACD histogram indicates a turn up
a gap up occurs on the Parabolic SAR line
buy stop is placed above the maximum of the key bar
SELL conditions (all conditions must be met):
the intersection of the MACD line and the MACD histogram indicates a turn down
a gap down occurs on the Parabolic SAR line
sell stop is placed below the minimum of the key bar
Exit criteria: exit the trade by stop loss or when a reverse signal appears.
Open a chart of a currency pair with stable volatility using a timeframe of M30, H1, or H4. Apply the Parabolic SAR indicator with settings (0.02, 0.2) and the MACD indicator with settings (12, 26, 9) based on the close price. Ensure that the market is not experiencing high volatility or speculative periods.
Look for a BUY signal when the MACD line intersects the MACD histogram indicating a turn up and a gap up occurs on the Parabolic SAR line. Enter a long position with a buy stop above the maximum of the key bar and set a stop loss between 5 and 30 points below the key bar's minimum. Monitor the trade and exit either by hitting the stop loss or when a reverse signal appears.
Repeat the process for a SELL signal by identifying when the MACD line intersects the MACD histogram indicating a turn down and a gap down occurs on the Parabolic SAR line. Enter a short position with a sell stop below the minimum of the key bar and set a stop loss between 5 and 30 points above the key bar's maximum, exiting the trade upon the appearance of a reverse signal.
