Take advantage of forex scalping with the Parabolic SAR indicator. The PSAR rapid forex scalper system uses the PSAR indicator for short-term trend direction and the sidus v.2 trend indicator for trade confirmation.
Indicators: Parabolic SAR (Step: 0.02, Maximum: 0.2), sidus v.2
Preferred time frame(s): 5 Minutes and above
Trading sessions: Euro and US
Preferred Currency pairs: EUR/USD, GBP/USD, USD/JPY, NZD/USD, AUD/USD, USD/CAD, USD/CHF, GBP/JPY, EUR/JPY
Example: GBP/USD 5 Min Chart
As shown in the chart above, the sidus v.2 trend indicator issued 3 signals (2 sell, 1 buy). PSAR filtered out the first sell signal (PSAR dots below the 1st sell signal). The two other confirmed trading signals could be closed for a fast 10-15 pips profit (click the image to enlarge).
- PSAR dots below the price (short-term uptrend)
- Sidus v.2 issues buy signal (up arrow)
==> This is your buy entry.
Stop-Loss: Place a low risk stop below the most recent support or just below the PSAR dots.
Buy exit strategy 1: Close the trade for 10-15 pips.
Buy exit strategy 2: Close the trade at risk-to-reward 1:1 or better (preferably at 1:1.5).
Buy exit strategy 3: Trail your stop up 1 pip below the rising PSAR dots.
- PSAR dots above the price (short-term down trend)
- Sidus v.2 issues sell signal (down arrow)
==> This is your sell entry.
Stop-Loss: Place a low risk stop above the most recent resistance or just above the PSAR dots.
Sell exit strategy 1: Close the trade for 10-15 pips.
Sell exit strategy 2: Close the trade at risk-to-reward 1:1 or better (preferably at 1:1.5).
Sell exit strategy 3: Trail your stop down 1 pip above the falling PSAR dots.