Parabolic SAR & Moving Averages: Strong Entry System

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Parabolic SAR & Moving Averages: Strong Entry System

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.

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