Parabolic SAR and MACD Forex Swing Trading Strategy For MT4
The purpose of this article is to illustrate the Parabolic SAR and MACD Forex Swing Trading Strategy For MT4. It is one of the most innovative methods by which the elite traders take the trade at the key swings.
Swing high is the zone in which sellers take the control and at swing low, the buyers kick in. The system uses MACD cross and standard Parabolic SAR data to find potential trade setups. As the system is mostly based on an indicator, you have to study and examine the support and resistance point so that you are not taking trades at the minor swings. The recommended TF or time frame for this method is 4H, D1, and weekly.
At the key swing high, the bulls will show signs of weakness. Multiple rejections will take place and you will see the MACD sky blue line crossing the red dashed line. But the cross over must take place at the top zone of the indicator window. After that, wait for 2 consecutive Parabolic SAR dots above the candlestick. As the dots are formed, short the asset with a stop 4 pips above the key swing high. The take profit (TP) is placed at the nearest supply or support level. Many traders use the key swing low to set the profit but it might result in big losses since previous lower highs can give decent support to the asset.
At the swing low, the bullish will start gaining strength. MACD cross will take place near the bottom of the window. The sky blue line will cross above the red dashed line as the confirmation of the bullish recovery attempt. Wait for 2 consecutive dots in the Parabolic SAR indicator. If 2 dots are printed below the chart, take your long trade. Place your stops 4 pips below the swing low and set the take profit or TP to the nearest resistance.
While using this trading method, you might not feel the urge to limit the risk. Forgetting about the risk exposure and taking the high risk is wrong. Follow the safety protocol even though this system can help you to win more than 75% of the time. And be cautious about the major news since the market may behave abnormally.
Download the complete system description and the files here: