The parabolic SAR trend scalper trading system is a trading system that a scalper should have all the confident with when using it is one of the few excellent scalping systems offered freely in the internet.
It comes in a compressed file that contains the indicators used and its template. You have to first decompress the component of the file and the copy the indicators and the template into their respective folders of the Metatrader. You can do this by going to the specific location where your Metatrader was installed, copying the indicators in the indicator folder of the MQL4 folder and the template into the template folder and then running the Metatrader. When you decide to do it in this manner, ensure that your Metatrader is initially closed. However if you cannot really remember where you installed your Metatrader, then you can run the Metatrader and click on the file button located on the top left corner. Then click open file location folder and copy the indicators and the template into their respective folders.
The parabolic SAR trend scalper trading system is designed to be used for trading the EUR/USD, AUD/USD and GBP/USD currency pairs. It is also best used on the five minute timeframe.
If you decide to use it to trade any other currency pair, then their spreads should be below 25. You can down load the ask bid spread indicator which will assist in indicating the spread so you won’t have to be calculating the spread every time you load new currency pair. Having this indicator will also reduce the chances of making miscalculation of the spread and your precious saves time also.
NOTE: the ask bid spread indicator don’t come with the folder of the parabolic SAR trend scalper trading system. You have to look for it and download it separately. It is free to download.
This scalping system incorporates the use of several indicators which include: the MACD colored (64,128 9), the exponential moving average of period 300 and the parabolic SAR indicator colored (0.01-0.01).
The template of this trading system come with only the moving average (100). The rest of the indicators have to be loaded onto the chart. The parabolic SAR indicator is loaded by clicking at the insert button on the MT4, then choose trend and click on the parabolic SAR indicator. You have to set the step of the parabolic SAR to 0.01 – 0.01 since its default is 0.2-0.2.
Fig. The template of the Parabolic SAR trend scalper trading system with all the indicators loaded.
For the MACD indicator you load it by clicking at the insert button, then choosing the oscillators and clicking on the MACD. For the MACD you have to change the periods of the fast EMA to 64, that of the slow EMA to 128 and that of the MACD SMA to 9.
Placing and closing trades using the Parabolic SAR trend scalper trading system
The trader should place a buy order when the market prices are above the MA (100), the parabolic indicator is below the market prices but showing an uptrend and when the MACD is above the 0 line level.
For the sell order, the trader should place the order when the market prices are below the MA (100), the parabolic indicator is above the market prices but showing a down trend and when the MACD is below the 0 line level.
Fig. Opening and closing a sell order.
From the above chart you will notice that the position wasn’t opened at the beginning of the downward trend because the parabolic SAR was below the market and showing an uptrend. The trade is opened when all the indicators are showing a buy signal.
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