MTF PSAR Indicator is a trend-following indicator, used to outline the swing highs and lows of a market trend in order to indicate the current trend direction of the market. It also helps traders finding possible breakout trade opportunities by marking the highs and lows of a sidelined market range. This indicator is vastly admired by the newbie traders for its simplicity of use and easy chart demonstrations.
MTF PSAR Indicator can be applied to trade all kinds of forex currency pairs available in the financial markets. Furthermore, MTF PSAR also suits all sorts of timeframe charts within the forex MT4 trading platform.
MTF PSAR Indicator Overview
Download and install the indicator on your MT4 terminal. Once you’re done, your trading chart will appear like the image below:
MTF PSAR Indicator Explanation
MTF PSAR Indicator applies a series of blue dotted lines in order to signal the market trends. These levels are updated automatically according to the changes in price actions. The indicator slope appears below the price candle is considered as the current support area of a bullish trend.
On the other hand, MTF PSAR bands appear above the price candle when the market is in a bearish trend, and the price is resisted from going up after hitting a certain price level.
Since the positions of such dynamic support/resistance are updated automatically, you may use these areas as you trailing stop levels of your any opened market positions. You can also add other trend-following oscillators along with this indicator for a double-check of the signals and better accuracy in tradings.
MTF PSAR: Buy Conditions
- A bullish candle closes right above the MTF PSAR level
- Trigger buy at the break of the respective bullish candle’s high
- Set stop loss below the current MTF PSAR level
- Exit long/take profit whenever the current PSAR level is broken
Also Read: Trend Magic Indicator MT4
MTF PSAR: Sell Conditions
- A bearish candle closes right below the MTF PSAR level
- Trigger sell at the break of the respective bearish candle’s low
- Set stop loss above the current MTF PSAR level
- Exit short/take profit whenever the current PSAR level is broken