Moving Average Lines & Parabolic SAR: Trend Confirmation

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Moving Average Lines & Parabolic SAR: Trend Confirmation

This strategy is designed to catch trends on the H1 timeframe by combining the crossover of three Exponential Moving Averages (EMA) with the trend-following capability of the Parabolic SAR. It provides clear entry signals and a dynamic exit method.

Strategy Profile

Timeframe

H1, M30

Pairs

All Pairs

Indicators

3 EMAs + PSAR

1. Indicator Setup

Configure your chart with the following settings:

  • Parabolic SAR: 0.2, 0.02.
  • EMA 10: Gold line (Fast).
  • EMA 25: Green line (Medium).
  • EMA 50: Red line (Slow).

2. Long Entry (Buy) Rules

  1. Crossover: The Gold EMA 10 crosses both EMA 25 and EMA 50 from bottom to top.
  2. Trend: The Parabolic SAR dot is below the price.

3. Short Entry (Sell) Rules

  1. Crossover: The Gold EMA 10 crosses both EMA 25 and EMA 50 from top to bottom.
  2. Trend: The Parabolic SAR dot is above the price.
Moving Average Parabolic SAR Strategy
Figure 1: Trade entries based on 3-EMA cross and SAR confirmation

Exit Strategy

  • Stop Loss: Slightly beyond the EMA 50 (Red line).
  • Take Profit: Close when the price crosses all 3 EMAs in the opposite direction.

Identify Strong Trends: Use this H1 system for consistent entries and earn rewards with FXRebate.

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