Parabolic SAR Scalping MT4 is a scalping forex trading strategy. Parabolic SAR scalping is very simple to trade and it is capable of giving you consistent profits. This is a trend based scalping system so this forex trading system works best in trending market environment. Some moving averages and parabolic SAR are used in the main chart window to generate trading signals and the momentum based indicator in the indicator window is used to confirm the momentum of the market. I found out that 15-minute time frame is the best for this one.
Parabolic SAR Scalping Overview
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Altogether there are 7 technical indicators in this trading system but I’ve not mentioned pivot indicator which is present in this trading system.
Parabolic SAR Scalping Indicators
- Moving Averages
There are four moving averages in this trading strategy. Green moving average is the fastest one and the red one is the slowest one. In a bullish market green moving average should be above all the other moving averages and in a bear market green moving average should be lower than other moving averages.
- Parabolic SAR
Parabolic SAR appears above and below the market price. You should buy when Parabolic SAR is below the market price and vice versa.
- BH Ergodic
This is a momentum based technical indicator. This indicator consists of two oscillators; a blue and a dotted golden oscillator. When the dotted golden oscillator is above the blue oscillator, it’s a bullish signal and vice versa.
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Parabolic SAR Scalping: Buying Parameters
- Forex pair should be up trending.
- Green moving average should cross above all the other moving averages.
- Parabolic SAR indicator should appear below the market price.
- Dotted golden oscillator should cross above the blue oscillator.
- Execute your long position when above parameters are met.
- Keep your stop loss below the recent swing low.
- Book your profit when Parabolic SAR appears above the market price.
Parabolic SAR Scalping: Selling Parameters
- Forex pair should be down trending.
- Green moving average should cross below all the other moving averages.
- Parabolic SAR indicator should appear above the market price.
- Dotted golden oscillator should cross below the blue oscillator.
- Execute your short position when above parameters are met.
- Keep your stop loss above the recent swing high.
- Book your profit when Parabolic SAR appears below the market price.