Parabolic Sar and three exponential moving averages

Parabolic Sar and three exponential moving averages

Parabolic Sar and three exponential moving averages is a tren following trading system, that uses 2 technical indicators to determine you when you should enter and exit a trade.

Technical indicators:

Parabolic SAR (0.2 0.02),

the Exponential Moving Averages 10, 25 and 50 (period).

Time Frame 60 minute

Currency Pairs: majors (EUR/USD, GBP/USD, USD/CHF, AUD/USD, AUD/JPY,GBP/JPY, USD/JPY).

Rules for trading

10 EMA crosses the 25 and the 50. If the 10 EMA crosses the 25 and 50

up from the bottom, you enter your trade ‘long’ and ‘buy. If the 10 cross the 25 and 50 down from the top you go ‘short’ and ‘sell’. Make sure that when you get into your trade that the Parabolic SAR is on the bottom when you go long and on the top when you go short.

Parabolic Sar and three exponential moving averages

In the example (Buy) USD/CHF , where I indicated the enter. See how the 10 EMA crossed up the 25 and 50 and the Parabolic SAR was on the bottom.

Confirm this trade with a switcth at the 15 min charts Parabolic SAR is going the same way. Note: never trade against the 15 min Parabolic SAR .

EXIT a trade

When the 3 EMA's crosses in opposite direction, this is a best way to exit a trade.

Set stop loss below/above the 50 EMA.