Three Indicators Strategy: AO, AC, and Parabolic SAR

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Three Indicators Strategy: AO, AC, and Parabolic SAR

This strategy combines three powerful tools to forecast trend changes and capture market momentum. Using Bill Williams’ Accelerator Oscillator (AC) and Awesome Oscillator (AO) alongside the Parabolic SAR, it provides a confirmed signal for entering trends at their inception on the H1 timeframe.

Strategy Profile

Timeframe

H1

Pairs

Major Pairs

Indicators

AO + AC + SAR

1. Indicator Setup

Apply the following standard indicators to your H1 chart:

  • Parabolic SAR (PSAR): Default settings.
  • Awesome Oscillator (AO): Default settings.
  • Accelerator Oscillator (AC): Default settings.

2. Long Entry (Buy) Rules

All three conditions must be met on the same “signal” candle:

  1. Trend: Parabolic SAR dots are below the price chart.
  2. Momentum: AO Histogram changes color from Red to Green.
  3. Acceleration: AC Histogram changes color from Red to Green.

Action: Open Buy at the opening of the next candle.

Three Indicators Strategy Buy Signal
Figure 1: Buy Signal – AO and AC turn green with PSAR support

3. Short Entry (Sell) Rules

All three conditions must be met on the same “signal” candle:

  1. Trend: Parabolic SAR dots are above the price chart.
  2. Momentum: AO Histogram changes color from Green to Red.
  3. Acceleration: AC Histogram changes color from Green to Red.

Action: Open Sell at the opening of the next candle.

Three Indicators Strategy Sell Signal
Figure 2: Sell Signal – AO and AC turn red with PSAR resistance

Trade Management

  • Stop Loss: Place at the High/Low of the signal candle.
  • Take Profit: 1:1 ratio (equal distance to Stop Loss).
  • Alternative Exit: Close when both AO and AC change color against your trade.

Combine and Conquer: Use this triple-indicator system and earn rebates on every trade.

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