Parabolic SAR

To our knowledge about trading in the Forex market, I now add an effective counter to that at the same time already in itself a good trading strategy can - represent the parabolic SAR (stop and reverse)

This was developed precisely for the reason to generate signals for buying or selling on the one hand, at the same time but also to take account of the risk management.

Caveat: the indicator works excellent in cases of strong trends, with weak trends, he is however quite ineffective and should serve as a signal. Therefore, for this indicator, you should best times from 8: 00 am to 11 am (open Frankfurt Stock Exchange and later London Stock Exchange) and from 14.00 to 16.00 (Frankfurt, London and New York Stock Exchange opened) use of the market in the most currency pairs that has the strongest trends, as here.

The parabolic SAR provides a buy signal, and a sell signal when a dot appears in the course, if a point over the course.

At the same time, the position of the point to as a stop-loss function, i.e. that it is once again leaving from the trade once the course has reached the level of the point.

As a rough rule of thumb and policy proposal should apply, that one goes into a trade as soon as the second or third spot on one side of the course shows up and leaving again as soon as two points on the opposite side appears, or when the price reaches the level of the first point. In the first case, we should have made a profit with this strategy, we minimise our loss in the second case.

I personally have the parabolic SAR used once to the trade as an indicator, but am departed as it is sometimes too unpredictable when one has to do it with a strong and when a weak trend. Help can you here certainly use other indicators, or are using parabolic SAR in the parent time Windows confirmed the trend direction.

But I think that who tradet with indicators, come to test this strong trend following indicator.