ADX With Parabolic Sar Trading System

ADX with Parabolic Sar is a simple trend following trading system that you can apply at all trading plataform.

Time frame 30 min or higher.

Currency pairs: EUR/USD, GBP/USD, USD/JPY, EUR/JPY, EUR/AUD, EUR/NZD, EUR/CAD, GBP/JPY, AUD/USD, AUD/NZD, NZD/CA, NZD/JPY, AUD/JPY, CAD/JPY, NZD/USD.

Indicators setting:

ADX 14 period, close (d+ , d-) with orizzontal line at level 20.

Parabolic Sar (0.2- 0.02).

The signal are generate by crossover of D+ and D- of ADX the Parabolic Sar confirms these signals.

D+ above D- long signal is confirmed by the dots of the Parabolic Sar below the candle.

D+ above D+ short signal is confirmed by the dots of the Pasrabolic Sar above the candle.

We you get a trade setup on the ADX that the Parabolic Sar doesn't confirm at the time needs to wait unitl it does confirm before you enter a trade. Now let's a look at the ADX indicator if I tight a click there and go properties we to have a setting 14 period close.

Trading rules ADX With Parabolic Sar Trading System

Buy

ADX 14 period, close, line above 20 level.

d+ line >d- line and above 20 level. (This is the timing for entry).

Parabolic Sar confirm with the dot below the candle.

Sell

ADX 14 period, close, line above 20 level.

d- line >d+ line and above 20 level. (This is the timing for entry).

Parabolic Sar confirm with the dot above the candle.

You place stop loss 25-50 pips depends by time frame ad currency pair or below the previous swing high/low, move stop loss after n pips in gain. Profit target at the levels of support or resistance, or close position when the stistem changes the position. My advice is to always go out from position on profit and resistance levels.