Forex trading strategy #2 (Parabolic SAR + ADX)

Submitted by Edward Revy on February 28, 2007 - 15:01.

The two indicators we are going to talk about here are found to be very well working when used side by side. This Forex trading system is an another simple discovery; and hundreds of such discoveries can be made when traders are there to learn and experiment.

Any currency pair and time frame can be used.
Indicators: Parabolic SAR default settings (0.02, 0.2), ADX 50 (with +DI, -DI lines)

Entry rules: SELL When the +DI line is below the -DI line, and Parabolic SAR gives sell signal. When the +DI line is above the -DI line, all Parabolic sell signals must be ignored.
Entry rules: BUY when the +DI line is above the -DI line, and Parabolic SAR gives buy signal. When the +DI line is below the -DI line, all Parabolic buy signals must be ignored.

Exit rules: when +DI line and -DI lines have crossed again.

Advantages: allows filtering entries and predicting good exits.

Disadvantages: Both Parabolic SAR and ADX are follow-up indicators. Although they complement each other very effectively, the “weakest” in chain is ADX, because during trading it can give one signal, but later change to the opposite. Once given a signal from ADX, waiting for the current price bar to close to avoid such misleading is advised.

Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed

Submitted by Giulia on August 9, 2022 - 07:54.

Great strategy. I use it 1 hour with pivot point daily and DM 50 and, in other window, ADX 14. 15 minutes for index and 1 hour for forex. Giulia

Submitted by User on January 28, 2013 - 09:10.

one last question if y´m loking for a target 100 pibs whit sl 50 pibs what do i use a 4h 1h 30min and 15 min should look all the same , or do i use as well 1day and 1wek chart this site is very powerful thanks you gays great work keep on caming whit new strategies please

Submitted by User on January 7, 2013 - 10:02.

it is easy 4h adx 50 or 30 signal ok then pass 1h then entry the maney manegemment is everything [email protected] i´m new at this but the site is great

Submitted by User on November 28, 2012 - 04:57.

I am very confused about please tell me that what chart i mean what will be better 15 minuets chart or 30 minutes.

Submitted by User on November 27, 2012 - 13:00.

very nice information.

Submitted by User on September 23, 2012 - 09:33.

nice strategies Adward thank u Raees"[email protected]

Submitted by Redox on May 1, 2012 - 18:37.

Hello,
What is the best parabolic settings for 4H time frame?

Redox

Submitted by merkysolutions.com on March 10, 2012 - 08:53.

40/100 pips weekly

You can make btw 20/100pips/week simply by trading psar H4 crosses. On crossover, simply enter atrade in the direction of hte new cross targeting 20/50pips. u may have an average of two trades every week.

www.merkysolutions.com

Submitted by User on January 23, 2012 - 21:09.

Hi Lalit Burhade,
(Parabolic SAR (0.012, 0.2)
ADX 50
Entry and Exit when both gives same signal)
This system suitable to what time frame?

thanks.

Submitted by User on January 11, 2012 - 15:15.

In my honest opinion, I am testing this strategy out right now and I am trading off the daily time frames which means a huge amount of risk which is why I reduced my lot size. I believe this strategy has potential, will post my results once I have a good enough time period.

Submitted by User on January 3, 2012 - 14:35.

Someone is posted this strategy in a forum last year-- http://forum.mt5.com/showthread.php?5327-Clear-and-simple-strategy-...

Submitted by Sohel on December 20, 2011 - 14:48.

Hi, I'm new in forex trading. I was following this strategy in my demo trading. Read the comments. Additional use of 5 & 12EMA give early entry signal.... what should I do in this case? Wait for +DI & -DI to cross or follow the MAs??

Sohel

Submitted by Lalit Burhade on October 17, 2011 - 09:39.

Try using following combination and share your experience here.
Parabolic SAR (0.012, 0.2)
ADX 50
Entry and Exit when both gives same signal
Regards,
Lalit Burhade

Submitted by User on September 29, 2011 - 13:17.

Why would anybody ring Nigeria to ask you for detailed information on how to use this strategy as a customised indicator? Are you crazy or what? You think the telephone call is free, don't you?

I can smell a rat here - someone is looking for an opportunity to SCAM others. How so bloody typical of you Nigerians.

Submitted by Olajide on September 22, 2011 - 13:51.

I have been reading several comments about this strategy but the fact is that the strategy is a very good strategy when considering some basic facts such as, timing and active session for the pairs and also using it on multitimeframe will yield wonderful results. their strategy could be used in many ways, you can used it at all market opens, you can used it for breakout and you can used it to swing or weekly trade. infact this strategy is very simple, flexible and easy to apply, just used it in all timeframe and see is wonderous work. for detailed information on using this strategy as a customised indicator, then you can call me on +234-803-436-3444. Olajide

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Forex trading strategy #2 (Parabolic SAR + ADX)

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