Forex Scalping Strategy With Parabolic SAR and Advanced MACD v3 Indicator

This scalping system consists of the 125 exponential moving average with PSAR dots and the advanced MACD v3 candlestick indicator.

This system works best on the 5 minute charts for scalping purposes.

You can use it on higher time frames as well for position or swing trading.

Don’t forget to adjust the recommended profit target settings for the aforementioned trading styles.

Chart Setup

Indicators: 125 exponential moving average, MACD Trend Candles v3, Parabolic SAR (0.02 step)
Preferred time frame(s): M5
Trading sessions: Euro, US
Preferred Currency pairs: EUR/USD, GBP/USD, EUR/JPY, GBP/JPY

Download

Download the Forex Scalping Strategy With Parabolic SAR and Advanced MACD v3 Indicator.

Example: GBP/JPY 5 Min Chart

forex-scalping-with-macd-and-psar

The chart above shows a profitable buy and sell trade with the PSAR dots system. Both closed for 20 pips. Click the chart to enlarge.

Trading Rules

Buy Rules:

  • Price above 125 EMA + Green MACD candle + PSAR dots below the price.

This is your long entry. Place stop-loss 1 pip below the purple Parabolic SAR dot.
Price objective: 20 pips or risk-to-reward 1:2.

Sell Rules:

  • Price below 125 EMA + Red MACD candle + PSAR dots above the price.

This is your short entry. Place stop-loss 1 pip above the purple Parabolic SAR dot.
Price objective: 20 pips or risk-to-reward 1:2.

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