The Parabolic Sar Trend Scalper Trading System represents a short-term trend-following trading strategy for MT4 users. It comprises Parabolic SAR, 100-EMA, and MACD Colored indicators ensuring its users delivering highly accurate, and real-time trend alerts.
The 100-EMA(Exponential Moving Average) provides an overview of the intraday market trend. So, the decision over going long or short mostly depends on the price position compared to the EMA value.
Moreover, the Parabolic SAR provides short-term trend reversal signals that determine trade entry zones.
However, the timing of entries entirely depends on MACD Colored signals. Like, green bars with positive values mean a go-ahead for a buy order.
Buy Signal Generation with Parabolic Sar Trend Scalper Trading System
The price moving above the 100-EMA indicates a long-term bullish trend condition. However, the price has to break the Parabolic SAR resistance to signal a bullish trend reversal. The MACD Colored displays green bars spiking above the neutral level means an ultimate buy confirmation. Exit long when MACD Colored bars turn red and drop below zero.
Sell Signal Generation with Parabolic Sar Trend Scalper Trading System
In the above example, initially, the Parabolic SAR was already riding above the price, confirming a short-term downtrend signal. The final bearish trend confirmation came when the price broke below the 100-EMA level. Moreover, the MACD Colored generated red bars at the negative zone signaling a sell order. Exit sell orders once the MACD Colored signal a bullish momentum.
Also Read: RoboForex Account Types
The Parabolic Sar Trend Scalper Trading System makes forex day trading simple for novice speculators. The combination of Parabolic SAR and the 100-EMA at the main chart window offers a clear overview of possible starting and ending points of market trends. As a simple trading strategy, the Parabolic Sar Trend Scalper tends to be a perfect indicator for beginner-level day traders.