Forex High Profits High Accuracy Parabolic SAR System with Simple Moving Average and ATR Ratio

Forex High Profits High Accuracy Forex Trading System – This best Parabolic Sar Forex Trading System with Simple Moving Average and ATR Ratio Indicator trading concepts and techniques are simple and easy to learn.
 


 
The Parabolic Stop and Reverse (SAR) is a trend following indicator, which is used to effectively identify price reversals.
 
Being able to properly utilize the SAR allows a trader to determine the direction of the trend, spot suitable entry and exit points and assist in placing trailing stops.

The Parabolic SAR is visualized by a series of dots or dashes, which are placed either beneath or above the price action, depending on the market trend. As the two cross, a signal is generated that the current trend is most likely coming to an end, thus giving us a hint to close any open positions.

The series of dots, which visualize the SAR, are at a certain distance below the price action, when the market is trending upward. Logically, during a downtrend, the parabolic SAR stands above the price action, again at a certain distance.

The Parabolic SAR has two parameters, which can be fine tuned according to traders’ preferences. These are the step value (how much will the SAR increase when a new extreme occurs), and the maximum value of the indicator.
 
ATR Ratio Indicator
 
The indicator of the ratio between fast Average True Range (ATR) and slow ATR.
 
ATR ratio often reach high values after the prices quick and strong movements. Low indicator values often correspond with long periods of flat that can be observed on the market top and during consolidation. It can be intepreted according to same rules as other volatility indicators.

Forecasting method using ATR ratio is as follows: the higher is the indicator value, the higher is the probability of a trend change; the lower is the value, the weaker is the trend movement. In case the indicator value climbs above the blue horizontal line, it is time to buy or sell.

High ATR ratio price levels often correlate with high volatility. Low ATR ratio price correlates with low volatility, as the prices stabilize or move along the channel flat movement up to the possible breakout point.
 

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High Accuracy Parabolic SAR Trading Rules

 
This strategy is a trend-scalping strategy, which means it works best in a trend. The strategy combines two trend indicators, SMA 50 and Parabolic SAR indicator with default setting (step 0.02).This is an simple Scalping System that works only pending the London Session.
 
Forex Indicators

  • Parabolic SAR indicator with default setting: (a.) Step 0.02, (b.) Maximum 0.2
  • Simple moving average (SMA), period 50, and apply to close.
  • ATR Ratio,
  • SM Hull Moving Average
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BUY Rules
  • SM Hull blue and upward above SMA50,
  • ATR Ratio indicator upward and above 1 line,
  • The price to go above the SMA 50,
  • The market price above Parabolic SAR ,
  • Once the market price goes above the Parabolic SAR, the Parabolic SAR will appear below the market price. This is the signal to enter for long.

 

SELL Rules
  • SM Hull DarkOrange and downward below SMA50,
  • ATR Ratio indicator upward and above 1 line,
  • The price to go below the SMA 50.
  • The market price below Parabolic SAR ,
  • Once the market price goes below the Parabolic SAR, the Parabolic SAR will appear above the market price. This is the signal to enter for short.

 

EXIT Position
  • The stop loss is set at 12-15 pips below the entry price.
  • The profit target is 7 pips above or below the entry price.

 

NOTE :

In forex trading, discipline means following your trading system rules strictly and precisely.
 
Over 95% of forex traders lose, not because they do not have a good trading system or they have not learned the techniques. They lose because they fail to follow their trading system rules. They lose because they have no discipline.



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