Parabolic SAR and EMA Forex Trend Following Strategy For MT4
The Parabolic SAR and EMA Forex Trend Following Strategy For MT4 can be used across the entire forex trading markets meaning that it works on all currency pairs.
This is a trend following trading strategy - meaning that it is designed in a way that ensures that you trade in line with the direction of the underlying trend. This helps to reduce the risk because you are stacking the odds in your favor. But you must stick to the rules of this trading system so that it becomes of good benefit to your trading portfolio.
This trading method has a total of just two main indicators. There is a Stop And Reverse indicator and an Exponential Moving Average. There is a total of three EMA instances, and they have the following configuration setting as per their period - 34, 12, and 5. What is enjoyable about this method is that the rules for entering the market are straightforward - there is nothing abstract about this system.
This element about it makes it viable for use by almost any trader so long they have a solid basic understanding of trading. When you want to go short the 5-period EMA has to be below the twelve-period EMA and the 34-period EMA. Secondly, the SAR must be above the 5-EMA. Place your stop loss 40 pips above your entry point. If you are looking to go long then your 5-period EMA has to be above the twelve-period EMA and the 34-period EMA. Secondly, the SAR must be below the 5-EMA.
Place your stop loss 40 pips below your entry point. In both cases, your take profit will be at least 20 pips. This strategy is set up in such a way that there is enough space or room for the price to trade thus increasing the likelihood of hitting your take profit level. I
t goes without saying that you need to ensure that this strategy works in your favor - this can only happen if you abide by the rules using a strict discipline. Therefore, make the best of this trading strategy.
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