The Parabolic SAR (Stop and Reverse) is a popular technical indicator used by traders to identify potential trend reversals and entry/exit points. When combined with two moving averages—such as a fast (short-term) and a slow (long-term) moving average—it can enhance trading decisions.
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For example, a trader might use a 10-period and 50-period moving average alongside the Parabolic SAR. When the price is above both moving averages and the Parabolic SAR dots are below the price, it confirms a strong uptrend, signaling a potential buying opportunity. Conversely, if the price is below both moving averages and the Parabolic SAR dots are above the price, it suggests a downtrend, indicating a possible short-selling opportunity.
One effective strategy is to wait for a moving average crossover (e.g., the fast MA crossing above the slow MA) while the Parabolic SAR aligns with the trend direction. For instance, if the 10-period MA crosses above the 50-period MA and the Parabolic SAR dots switch to below the price, it reinforces a bullish signal. Traders can use this setup to enter long positions with the Parabolic SAR acting as a trailing stop-loss. Similarly, if the moving averages cross downward while the Parabolic SAR dots flip above the price, it strengthens the bearish case, allowing traders to exit longs or enter short positions while using the SAR as a dynamic exit guide.
However, false signals can occur, especially in choppy or sideways markets. To filter out noise, traders often look for additional confirmation from volume indicators or support/resistance levels. The Parabolic SAR works best in trending markets, whereas moving averages help smooth out price action. By combining these tools, traders can improve their trend-following strategies while managing risk effectively. Adjusting the sensitivity of the Parabolic SAR (via the step and maximum settings) and selecting appropriate moving average periods based on the trading timeframe can further refine the strategy for better accuracy.
Learn how to day trade. This video is dedicated to 'everyday' folks starting out with a smaller account - think $1000 or less. Like starting any career, there is a lot to learn when you're a day trading beginner. Here are some tips to steer you in the right direction as you start your journey. These tips will get you setup with the proper indicators and settings and strategy, help you decide what to trade and when to trade, show you how much capital you need, how to manage risk, and how to practice a day trading strategy effectively.
We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors.
Trade On Pocket Option: http://pocketoptioncapital.com
For example, a trader might use a 10-period and 50-period moving average alongside the Parabolic SAR. When the price is above both moving averages and the Parabolic SAR dots are below the price, it confirms a strong uptrend, signaling a potential buying opportunity. Conversely, if the price is below both moving averages and the Parabolic SAR dots are above the price, it suggests a downtrend, indicating a possible short-selling opportunity.
One effective strategy is to wait for a moving average crossover (e.g., the fast MA crossing above the slow MA) while the Parabolic SAR aligns with the trend direction. For instance, if the 10-period MA crosses above the 50-period MA and the Parabolic SAR dots switch to below the price, it reinforces a bullish signal. Traders can use this setup to enter long positions with the Parabolic SAR acting as a trailing stop-loss. Similarly, if the moving averages cross downward while the Parabolic SAR dots flip above the price, it strengthens the bearish case, allowing traders to exit longs or enter short positions while using the SAR as a dynamic exit guide.
However, false signals can occur, especially in choppy or sideways markets. To filter out noise, traders often look for additional confirmation from volume indicators or support/resistance levels. The Parabolic SAR works best in trending markets, whereas moving averages help smooth out price action. By combining these tools, traders can improve their trend-following strategies while managing risk effectively. Adjusting the sensitivity of the Parabolic SAR (via the step and maximum settings) and selecting appropriate moving average periods based on the trading timeframe can further refine the strategy for better accuracy.
Learn how to day trade. This video is dedicated to 'everyday' folks starting out with a smaller account - think $1000 or less. Like starting any career, there is a lot to learn when you're a day trading beginner. Here are some tips to steer you in the right direction as you start your journey. These tips will get you setup with the proper indicators and settings and strategy, help you decide what to trade and when to trade, show you how much capital you need, how to manage risk, and how to practice a day trading strategy effectively.
We're currently in our 13th year helping traders become successful in the live markets so we know a thing or two about leveraging a small account into serious wins.
Open Account: http://pocketoptioncapital.com
Risk Disclaimer:
Trading options involves financial risk and may not be appropriate for all investors.
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LearningTranscript
00:00hello guys welcome to another video in this video i'm going to be sharing with you a very powerful
00:05strategy very easy and also very simple strategy you can use to make a whole lot of money for
00:11yourself in the market this particular strategy i'm going to be using it to transform my account
00:16from over a thousand dollars to over five thousand dollars right here in this video i'm going to be
00:22sharing with you how i'm going to be doing that and how you can also do the same so you can also
00:27be making a consistent amount of money right in the market if you're a beginner trader you don't
00:33have to be afraid you don't have to panic you don't have to be worried because i'm going to be taking
00:37you through step by step what you need to put into considerations so you can also start making money
00:42right here right now so this strategy is a very simple one i've tried it severally and it has been
00:48giving me over 90 percent winning rate i shared it with some of my inner circle who actually tried it
00:54and they were able to make a very good amount of money right with it that's the reason why i have
00:58to come right here to share it with you so you all can also try it out and see if you can be able to
01:03make a whole lot of money from it after watching this video if you enjoy the content and you really
01:08want to be part of all do make sure you subscribe to this channel hit the notification bell so you
01:12miss any of our amazing videos guys so right here this strategy is a very simple one i'm going to be
01:17making use of three indicators we're going to come over to the indicator section right here
01:21i'm going to be using two moving average i'm going to be using one parabolic sar these are the
01:27indicators we're going to be using with this strategy our first moving average comes with
01:31the settings of a period of 23 we're going to set this as 23 then the moving average we're going to
01:36be making of sma right here on the style level we're going to be using a green color i'm going to be
01:41using it on two pixels so when you are done just click on save with our second moving average it comes
01:47with a period of five we're going to set this as five then moving average we're going to be using
01:53ama right here on the style level we're going to be using red color i'm going to be using it on two
01:58pixels so when you're done just click on save right here with our parabolic sar we're going to be using
02:05the acceleration of 0.04 set this as 4 why the maximum acceleration i'm going to be using 0.2 right here
02:13on the style level we're going to be using a white color i'm going to be using it on one pixel so when
02:19you're done just click on save so these are the settings that actually comes with all our indicators
02:24so right here we're going to be trading this strategy on 30 seconds kind of time frame
02:29we're going to be using the hiking ashy candlestick not only that guys we're going to be trading the
02:33strategy on one minute so guys this is a very powerful strategy and i do advise you to watch this
02:39video to the end so that you can be able to have a similar result this could actually help you to
02:44remain consistent and remain profitable right here in the market so this is how the strategy works
02:49guys the first thing you need to put into consideration is your two moving average line
02:54immediately you see your two moving average line intersect each other in the case of a buy trade
02:58you need to also see your parabolic sar pointing out giving you the same confirmation but remember
03:03before you actually take a trade you need to see a consistent candlestick immediately you see that
03:08that is when you can actually take a buy trade why in the case of a sell trade the same thing also
03:14repeats itself you need to see a consistency of a candlestick not only that guys you also need to
03:19see the two moving average intersect each other giving you a down trade opportunity before you can
03:24be able to take a trade not forget your parabolic sar is also pretty much important immediately the two
03:31moving average line intersect each other and you confirm it with a stronger candlestick that is when
03:35you also need to put into consideration your parabolic sar before you can be able to take a
03:40trade all these and many more we're going to be talking about on this video and i do advise you
03:44guys to watch this video to the end so that you can also make a very good amount of money in the
03:49market so guys right here i'm going to go into the market right away when i find an opportunity i'm
03:54going to come right here and explain to you what you need to see before you take a trade
03:58so guys right here we're looking out for a very good opportunity for a buy trade
04:03so i'm going to be entering this trade with a thousand dollars right here i'm going to be
04:08entering this trade with a thousand dollars right at this particular level the first thing we
04:13considered right here guys is a consistency of a candlestick which we all can see right at this
04:18particular level immediately we saw that we also see the two moving average line intersect right at
04:23this particular point and if you could see right at this particular level we have our parabolic sar
04:29which is also giving us a very good confirmation for a buy trade basically i do advise you guys
04:35anytime you want to take a trade to ensure you are seeing a consistency of a candlestick this is
04:40the first thing you need to put into consideration before you trigger the trade not only that guys
04:45your 12 in average line also need to intersect each other and your parabolic sar i hope you're
04:50getting that right so guys i really want to let you guys know that this strategy works only on real
04:55markets it does not really work pretty much well on otc but it works perfectly well on the real
05:01market so i do advise you to try it out on the real market and let me know how your experience is
05:06as you can see guys right here we actually make a very good amount of money it's a very good one and
05:12this actually took our account to 1883 i hope you're getting that right it's a very powerful strategy
05:18guys and i do advise you to try it out on the real market it does not really work pretty much
05:23well on otc market so you can always try it out on the real market i hope you're getting it right
05:28so guys i'm going to go into the market and find another opportunity
05:31so guys right here we're looking out for a buying opportunity right at this particular point you can
05:38see we have a consistency of a candlestick right at this level and not only that we're looking forward
05:42to the crossing of our to moving average line you can see our parabolic sar give us a very good
05:48indication to entered a buy trade i hope you're getting that right so guys let's actually
05:53wait for a couple of seconds to see if we're going to have a very good entry right at this
05:58particular level so guys right here we have a very good entry right here so we're going to be
06:03entering this trade with 1800 so we're going to be entering 1800 but you can see right here the
06:11candlestick is not really consistent you can see the two moving average line is not properly crossing
06:16over so we want it to properly cross over before we can be able to take a trade let's wait for the
06:21next candlestick right at this particular level
06:24so right here we can enter for a buy trade again you can see right at this particular level
06:33our two moving average line properly crosses over right at this particular level so you need to see
06:38the two moving average line to cross this properly before you take a trade
06:42and not only that your consistency of your candlestick is very important you need to put that into
06:47consideration anytime you're taking a trade i hope you're getting that right do not forget your
06:52parabolic sar is also pretty much important you also need to put that into consideration anytime
06:58you want to take a trade i hope you're getting that right so guys right here we have 26 seconds
07:03towards the end of this trade let's wait patiently and see how this trade will turn out to be
07:08so guys right here we're having four seconds towards the end of this trade as you can see right here
07:17we also make a very good amount of money right at this particular point this is a very powerful
07:22strategy this is a very powerful one guys so our account is up for 3539 from a thousand dollars this
07:30is a very powerful one guys as you guys can see the market has always been stable anytime you're
07:35trading the strategy to ensure you're trying it on the real markets because that is where the
07:39consistency and the accuracy pretty much works i hope you're getting that right so guys i'm going
07:44to go into the market for my last trade because i think i'm going to be entering the next trade with
07:48three thousand dollars and that could amount to over five thousand dollars in profits i think i'm
07:53going to go into the market again when i find an opportunity i'm going to come right here guys and
07:57share this with you how you can also use the strategy to make a consistent money for yourself in the market
08:03so guys right here looking out for a selling opportunity right at this particular level
08:08i'm going to be entering this trade with three thousand dollars i'm just going to be entering
08:14the trade right at this particular point guys so the reasons why i'm entering this trade is pretty
08:19much simple the first thing you can see right here we have a consistency of a candlestick we have
08:24a stronger candlestick right at this particular level and not only that guys you can see the
08:29some of an average line to set right at this particular point and it's giving us a down trade
08:33opportunity the same thing with our parabolic sar as well we're having it right at this particular
08:38point which also gives us a very good opportunity to go into the market that's the reasons why i'm
08:43actually taking this trade i hope you're getting that right so guys this is a very powerful one
08:48let's actually wait we have 18 seconds towards the end of this trade let's wait and see how this
08:54trade will turn out to be guys so guys right here we have two seconds to the trade as you guys can
09:02see right here we are on a very good profit right at this point we are actually on a very good profit
09:07one thing i love about this strategy is that it always ensures to regulate the market and always put
09:13you on a very good win before the market could actually reverse or go in other way around so trading
09:18this strategy i might not actually guarantee you that you're going to have a hundred percent winning
09:22rates but i assure you that you're going to have over ninety percent winning rate trading this
09:26strategy and i do advise you to follow all the instructions i've laid down and be rest assured
09:31that you're going to be having a very good amount of money trading this strategy and so far we are
09:35up for six thousand two hundred and sixty nine dollars right in the trading account from a thousand
09:40dollars within the space of i think it's not shouldn't be more than five minutes right at this
09:45particular level this is a very powerful strategy guys and i do advise you to try it out and let me know
09:50in the comment section your experience with the strategy i hope you're getting that right
09:53so guys if this video really helps you and you're able to make money using this video do ensure you
09:58share it with your friends so that they can also learn what you're learning from this channel
10:01not only that guys do ensure you hit the subscribe button hit the notification bell so you'll be the
10:06first person to get notified anytime we release a video guys so guys this is where i'm going to stop on
10:10this video till i see you again in another video keep trading guys and bye for now