This trading tool indicates market trend. If market price moves above EMA , then it is considered as uptrend. When price goes down below EMA then it is considered as downtrend. You will get buy or sell signal along the trend with help of Parabolic SAR. How to get buy signal Market price must be above EMA. When the dots of this indicator appear below the market price in the up direction, then you will get buy signal.
Like as below image, if dots of Parabolic SAR appear again in the up direction, then you can take buy entry again for new bullish rally. When the dots of this indicator appear above the price in the down direction, then you can take sell entry. Like as below image, if dots of Parabolic SAR appear again, then you can take sell entry for another bearish rally. H4, Daily Currency pairs: Take profit and Stop loss: You can set pips take profit.
If you use this strategy on cross pair then you can pips take profit. You can close your trade manually when the dots of parabolic SAR appear in the opposite direction. You can set stop loss below swing low for buy entry. Similarly, for sell entry, you can set stop loss above swing high. You can get false signal in ranging market.
So you need to avoid this strategy on ranging zone. You must follow money management theory for following this strategy. To get good result from this strategy, you need to practice this on your demo account before using on your real account. Security Trading, Forex, Options, Futures and Commodities are highly leveraged products which involves large potential risks. If efficient money management,is not practiced then there are possibilities that you may lose your capital Margin Call in a matter of days or even minutes.
Before making any transaction, you should ensure yourself that you fully understand the risks involved in the Forex Market. We provide Forex signals and forecasts by the experience on different market conditions, price action, market sensitivity, strategies, analysis and other trading rules; though we we cannot assure you that every signals will gain you profit due to the unpredictable nature of the financial market.
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