Parabolic SAR Metatrader 4 Forex Indicator
The Parabolic SAR MT4 forex indicator is a popular forex trading indicator.
SAR refers to “Stop and Reverse”.
The indicator draws colored dots above and below the price.
Parabolic SAR dots above the price suggests the price is down trending.
Parabolic SAR dots below the price suggests the price is up trending.
This indicator can be used as a stand alone buy/sell forex indicator, however, it is recommend to use it together with other analysis tools or indicators for more profitable buy and sell trading signals.
This indicator can be used for scalping, day trading and short-term swing trading on any currency pair.
The USD/JPY M15 chart below displays the Parabolic SAR forex indicator in action.
Basic Trading Signals
Parabolic SAR trading signals are simple to interpret and goes a follows:
Buy Trade: Dots appear below the price (short-term bullish)
Bell Trade: Dots appear above the price (short-term bearish)
Tip: Add a 200 period simple moving average to the trading chart and trade in the overall direction of the trend indicated by the moving average.
Trend up? Only trade parabolic buy signals
Trend down? Only trade Parabolic sell signals
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (Step, Maximum) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Parabolic.mq4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)