Sar of MACD Scalping Strategy For MT4

Sar of MACD Scalping Strategy For MT4

Table Of Contents:

  1. Sar of MACD Scalping Strategy For MT4
  2. The Sar of MACD Scalping Strategy For MT4 – Long positions
  3. The Sar of MACD Scalping Strategy For MT4 – Short positions
  4. Is the Sar of MACD Scalping Strategy For MT4 any good?


Please note: This strategy was publicly published in the trading community and is free to use. We do NOT make an attempt to decide if this strategy is profitable or not, because we know that the major factors regarding trading results are the skills/experience of the trader who executes the strategy. Therefore, we are mainly explaining the components and rules of the strategy. If applicable, we are highlighting advantages, disadvantages and possible improvements of the strategy.


The Sar of MACD Scalping Strategy For MT4 is a short term trading system that relies on the signals generated from the parabolic SAR. The parabolic SAR or stop and reverse is an indicator that is ideally suited for showing the short term turning points in price. In this trading system, as the name suggests, the parabolic SAR is applied to the MACD or the moving average convergence divergence indicator.

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While generally, the rule of thumb is to use the trading signals from the SAR signals generated from price bars, here, we also look into the reversal signs from the parabolic SAR on the MACD indicator. This gives it a unique perspective of the markets, compared to the conventional types of trading.

There are quite a few indicators that are involved in the SAR of MACD scalping strategy for MT4. However, most of these are standard indicators. The advantage here being that if you are experienced enough, you will know what each of these indicators do.

Starting with the price chart for the SAR of MACD scalping strategy for MT4, we have the parabolic SAR indicator. This is the purple dots that you see on the screen. We also have an eight period simple moving average, as depicted by the red line. The 8-period moving average acts as a trend filter of sorts. Traders can buy the dips when price is in an uptrend.

But the catch here is that because an eight period moving average is used, you are not exactly able to see the trends. Because of the setting, the moving average is quite sensitive. Therefore, prices can rise and fall near this level quite easily and it is hard to find a sustainable trend.

In the first sub window of the SAR of MACD scalping strategy for MT4, we have a custom indicator called the SAR of MACD. This is the indicator where you have both the MACD and the SAR plotted. The price trends are depicted as and when the PSAR rises and falls. It takes a bit of getting used to trading with the SAR of the MACD indicator.

In the next sub window of the SAR of MACD scalping strategy for MT4, we have the regular stochastics oscillator. This is set to the default settings of 14, 3, 3. Traders can gauge the momentum of the trend by looking at how the Stochastics oscillator is positioned.

Thus, combining all the above indicators, we get a rather unique trading strategy called the SAR of MACD scalping strategy for MT4. Let's now take a look at how you can trade long and short positions using this trading system.


The Sar of MACD Scalping Strategy For MT4 – Long positions




To trade long positions using the SAR of MACD scalping strategy for MT4, we start by looking at the markets showing an uptrend. This is when you see that price is trading most of the time above the 8 period moving average. By this time, the PSAR on the price chart should be plotting the values below the lows of the price.

Next, look to the indicator in the first sub window. The SAR on MACD should be plotting below the MACD as well, which in turn should be showing the histogram being plotted above the zero line. This indicates that the markets are indeed moving higher.

Now, look to the stochastics oscillator which should be moving out from the oversold levels. Once all the three conditions are met, take a long position at market. Set your stop loss to the recent swing low. Then calculate the risk to reward for 1:3 and set your take profit level accordingly.


The Sar of MACD Scalping Strategy For MT4 – Short positions




To trade short positions using the SAR of MACD scalping strategy for MT4, we start by looking at the markets showing a downtrend. This is when you see that price is trading most of the time below the 8 period moving average. By this time, the PSAR on the price chart should be plotting the values above the highs of the price.

Next, look to the indicator in the first sub window. The SAR on MACD should be plotting above the MACD as well, which in turn should be showing the histogram being plotted below the zero line. This indicates that the markets are indeed moving lower.

Now, look to the stochastics oscillator which should be moving out from the overbought levels. Once all the three conditions are met, take a short position at market. Set your stop loss to the recent swing high. Then calculate the risk to reward for 1:3 and set your take profit level accordingly.


Is the Sar of MACD Scalping Strategy For MT4 any good?


In conclusion, the SAR of MACD scalping strategy for MT4 offers a rather unique approach to trading. There is no doubt that the SAR on MACD is a unique method where the parabolic SAR is applied to the MACD indicator. While on one hand it makes the SAR of MACD scalping strategy for MT4 quite unique, the Parabolic SAR is basically a stop and reverse indicator. This means that when prices break the PSAR from below, it signals the start of an uptrend and vice versa.

When you apply this concept to the MACD, it works differently. There is no price that is shown in the MACD and what you are left with is basically the MACD values.

Overall, the SAR of MACD scalping strategy for MT4 might be a good alternative for trading but it doesn't quite make the cut. It is up to the traders to decide if they want to trade using the SAR of MACD scalping strategy for MT4. There is no real advantage that you can gather by trading with this approach.

The use of regular indicators makes the template that comes with the SAR of MACD scalping strategy for MT4 easy to use and manage. You can apply this trading system on the short term charts, or even experiment with this method using the higher chart time frames as well.

Download the complete system description and the files here:

FREE Sar of MACD Scalping Strategy

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