Scalping using Parabolic SAR [Video]

Parabolic SAR is an indicator created by the same author as RSI. Thanks to this, it has similar features, namely: it measures the momentum of the price, on the basis of which it tries to indicate the moments of changing the trend direction. Is it better than the RSI? Can you make money using this indicator? How effective is it and in what configuration is it worth using? We answer these questions in this material.

Advantages:

• • The biggest advantage of the indicator is a clear indication of the order level stop loss.
  • After its breakout, as a rule, the price actually changed direction or we were in a sideways trend.

Disadvantages:

• • False signals. Or even a huge number of them.
  • EMA alone is not enough, you need to mark a zone around the moving average in which we do not take into account any signals, because when the price is too close, we are not clear in which trend we are.

Trading strategies is an educational cycle in which we present interesting investment systems intended for Forex market. We discuss the most important principles such as entering and exiting a transaction, the degree of risk, assessing the advantages and disadvantages and checking what results they generated on historical data.

Do you want us to check a specific strategy for you? Let me know in the comment!

The partner of the educational cycle is Tickmill broker.