Parabolic SAR & Moving Averages Strong Entry System

Parabolic SAR & Moving Averages: Strong Entry System

January 23, 2026

This is an easy-to-use trading strategy designed to identify strong entry points by isolating market noise. It combines the trend-following Parabolic SAR with a triple Exponential Moving Average (EMA) crossover system on the H1 timeframe.

Strategy Profile

Timeframe

H1 (Recommended)

Pairs

EURUSD, GBPUSD

Indicators

SAR + 3 EMAs

1. Indicator Setup

Apply the following indicators to your chart:

  • Parabolic SAR: Step 0.1 (Note: Source text says "0,1" which is likely 0.1 step, or standard 0.02, 0.2. Check platform defaults).
  • Moving Averages: Three EMAs with periods 6, 11, and 34.

2. Short Entry (Sell) Rules

  1. MA Crossover: The faster EMAs are below the slower lines (EMA 6 < EMA 11 < EMA 34).
  2. SAR Signal: The Parabolic SAR dot appears above the current candlestick (flip from below to above).
Parabolic SAR Moving Average Sell Strategy
Figure 1: Sell Signal - EMA alignment and SAR dot flip

3. Long Entry (Buy) Rules

  1. MA Crossover: The faster EMAs are above the slower lines (EMA 6 > EMA 11 > EMA 34).
  2. SAR Signal: The Parabolic SAR dot appears below the current candlestick (flip from above to below).
Parabolic SAR Moving Average Buy Strategy
Figure 2: Buy Signal - EMA alignment and SAR dot flip

Exit Strategy

Close the position when either:

  • Signal 1: Parabolic SAR prints a dot on the opposite side of the price.
  • Signal 2: The fast EMA 6 crosses the EMA 11 in the opposite direction.

Trend Following Made Simple: Use this EMA + SAR combo and get cashback on every trade.

⚠️ Disclaimer: The content of this article is strictly for informational purposes and does not constitute investment advice. FXRebate is a rebate and affiliate service, not a broker or fund manager; responsibility for trades and funds lies exclusively with the third-party broker. Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. Partner links used do not generate additional costs for you.

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