Stochastic and Parabolic SAR Day Trading Strategy

Stochastic and Parabolic SAR Day Trading Strategy is a trend momentum trading system.

Time Frame 15 min

Currency pairs: EUR/USD, GBP/USD, USD/JPY, GBP/JPY, USD/CHF.

Forex Indicators:

Parabolic SAR (0.11 – 0.01)

Stochastic Oscillator (5, 3, 3) with levels (30 and 70).

Trading rules

Buy

Parabolic SAR dot below the price.

Stochastic oscillator crosses downward below 30 level.

Open a a buy position at the opened of the next candle.

Place initial stop loss at the low of the previous swing.

Make profit with 1:1 Risk to reward. If stop is 10 pips the profit is 10 pips or whith

predetermined profit target 4-8 pips.

Sell

Parabolic SAR dot above the price.

Stochastic oscillator crosses downward above 70 level.

Open a a sell position at the opened of the next candle.

Place initial stop loss at the high of the previous swing.

Make profit with 1:1 Risk to reward. If stop is 10 pips the profit is 10 pips or with the 

predetermined profit target 4-8 pips.