For this strategy you are going to be using 3 indicators on MT4, Exponential Moving Average (EMA), Relative Strength Index (RSI) and Parabolic SAR. This strategy is very profitable for trendy markets. Since this strategy is used with 3 indicators it has a proven to be very successful.
- EMA 100
- Parabolic SAR
- RSI 50
Getting the signal
Buy Signal – The price must be above the 100 EMA and the candle must close above the 100 EMA. From lower to upper the RSI must close above 50. Parabolic SAR starts dots below candles indicating trend going up. Once all these conditions are fulfilled, this should be your buy signal.
Sell Signal – For this signal the price must be below the 100 EMA and the candle must close below the 100 EMA. From upper to lower the RSI must close below 50. The Parabolic SAR dot must form above to indicate the trend going down. When all 3 conditions are met that’s your sell signal.
Time Frame – Only H1 and above
Take profit and stop loss – The risk ratio for profit should be 1:2 and your stop loss should be some pips above the recent swing high for sell entry and some pips below the recent swing low for buy entry.
Recommended currency pairs – This strategy can be used on all currency pairs.
Warning – Please do not use this strategy for raging markets, only trending mode on the market is recommended. Keep your eyes on market news whenever you are trading. Try this strategy on a demo first until you are comfortable with it before going on a live account.