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Monday, April 29, 2024

Forex Trading Guide 2021: EMA Profit SAR System Strategy

The “EMA Profit SAR System” is a simple and effective strategy that is suitable for all currency pairs and various timeframes. To build this strategy, we use a couple of the following indicators: EMA and Parabolic SAR.

Required settings:

First window

On the H1 timeframe, add moving averages to the price chart. EMA (10) – red. EMA (25) – green. EMA (50) – blue. Add Parabolic SAR prices to the chart with standard parameters.

Second window

On the M15 timeframe, add Parabolic SAR prices to the chart with standard parameters.

Signal to buy

We find the moment in the first window, when the EMA (10) moving average crosses the moving averages with the periods of 25 and 50 upwards and the Parabolic SAR is below the price.

At the same time, in the second window, the Parabolic SAR should be located below the price.

Sell ​​signal

In the first window, we look for the moment when the moving average EMA (10) crosses the rest of the moving averages from top to bottom, and the Parabolic SAR is located above the price.

In the second window, the Parabolic SAR should be above the price.

Closing a position (in the first window)

Closing a long position. The moment when the EMA (10) moving average crosses 2 other moving average from top to bottom.

Closing a short position. The moment when the EMA (10) moving average crosses 2 other moving averages upwards.

Stop loss levels are set behind the average with a period of 50

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