Parabolic SAR & MACD: A Dual-Filter Trend System
The “Parabolic SAR + MACD” strategy is a trend-confirmation system designed to filter out false signals in trending markets. By combining the trailing-stop capability of the Parabolic SAR with the momentum confirmation of the MACD, this strategy provides clear entry and exit points.
Strategy Profile
Timeframes
H4, D1
Pairs
EURUSD, GBPUSD
Indicators
SAR + MACD
1. Indicator Setup
Apply these two indicators to your chart:
- MACD: Standard settings (12, 26, 9).
- Parabolic SAR: Step 0.02, Maximum 0.2.
2. Long Entry (Buy) Rules
A Buy signal is generated when both trend and momentum align:
- Trend: The Parabolic SAR dot appears BELOW the price candle.
- Momentum: The MACD histogram is in the positive zone (above zero).
3. Short Entry (Sell) Rules
A Sell signal is generated when:
- Trend: The Parabolic SAR dot appears ABOVE the price candle.
- Momentum: The MACD histogram is in the negative zone (below zero).
Trade Management
- Take Profit (H4): 60 pts (EUR), 70 pts (GBP).
- Take Profit (D1): 200 pts (EUR), 250 pts (GBP).
- Exit: Close trade at the next reversal of the MACD signal line.
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