Combining the Parabolic SAR with the 6-period and 14-period moving averages creates a dynamic trading strategy that blends momentum with trend confirmation.
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The Parabolic SAR (Stop and Reverse) is a powerful tool that helps traders identify potential trend reversals. When the SAR dots flip to the opposite side of the price, it often signals that a change in trend direction is imminent. This makes it an excellent tool for managing entries and exits, especially when used in conjunction with short and medium-term moving averages to confirm the strength of a trend.
The 6-period simple moving average (SMA) serves as a fast-moving indicator that quickly reacts to price changes, while the 14-period SMA provides a slower, more stable view of the market’s direction. A bullish signal is generated when the 6 SMA crosses above the 14 SMA, and if the Parabolic SAR is also showing dots below the price candles, it strengthens the confirmation of an upward trend. Conversely, a bearish crossover—where the 6 SMA falls below the 14 SMA—combined with SAR dots above the price indicates a high-probability shorting opportunity.
This triple-indicator strategy allows traders to better filter out market noise and avoid false signals. For example, during sideways or choppy markets, the SAR may produce frequent reversals, but waiting for alignment with the moving average crossover helps avoid whipsaws. When all three indicators align—SAR, 6 SMA, and 14 SMA—the probability of a successful trade setup increases significantly. By managing risk with tight stop-losses just beyond the SAR reversal level and trailing profits as the SAR progresses, traders can potentially capture substantial gains in trending markets.
Money Management: It is important to follow up with this strict rule of investment: If you have $100 in your account, each open position should be $5 tops If you have $200 in your account, each open position should be $10 tops If you have $500 in your account, each open position should be $25 tops If you have $1,000 in your account, each open position should be $50 tops If you have $2,000 in your account, each open position should be $100 tops If you have $5,000 in your account, each open position should be $250 tops
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.
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Risk Disclaimer: Trading options involves financial risk and may not be appropriate for all investors. The information presented here is for information and educational purposes only and should not be considered an offer or solicitation to buy or sell any financial instrument. Any trading decisions that you make are solely your responsibility. Past performance is not necessarily indicative of future results.
00:00Today we are going to see a strategy that will help new traders to make maximum profit, according to me.
00:16If you learn to use it properly then it will not be difficult for you to make $800, we have added two indicators in it in such a way that there is no need to do much analysis in it, and this strategy can help you to trade like a master trader.
00:30So without any delay, let's see the settings of the indicators, and I will also explain to you how to use it, and then I will try to make some dollars using this strategy. So first of all go to the settings of indicators and add the moving average.
00:49Now go to the settings of moving average and set the period to 6.
00:53And here we will keep the color of the mainline green, just make it 2px. And then save it.
01:01After this we have to go to the indicators settings, and add the moving average line once again.
01:08And then go to the moving average settings, and set the period to 14.
01:13And in the colors settings we will set the color of the mainline to white.
01:18And make it 2px. And then save it.
01:21After that we will need one more indicator, which is the parabolics R, so we will add that 2.
01:30And then go to its settings, and set the maximum acceleration to 0.3.
01:37And we will set its color to yellow.
01:43After that set the candle timing to 15 seconds.
01:47And set the trade timing to 1 minute.
01:51And I am going to keep the trade amount here as $260, you can set it according to your capital.
01:59Now we add currency pairs which give 92% return.
02:02Most of it will be OTC market, because it gives higher returns.
02:08And now our settings are complete.
02:10Now let us understand the correct way to earn from this strategy.
02:13So here I have got a good chart.
02:17We can place a trade here in the upside direction.
02:20So here you can see that parabolics R has made dots below the candles, and is pointing in the upward direction, and here the cross was almost formed in the downward direction, but then the bullish trend started in the market and now the cross has been formed in the upward direction, this means that more force is visible in the upward direction in the market.
02:41And I think that now the market will probably break this resistance and go up.
02:45So here our first entry has won, and we have made a profit of around $478 in this trade.
02:58So there can be a good entry here also.
03:03So here the green line of the moving average has crossed the white line in the downward direction, and here the parabolics R has also provided a signal in the downward direction, here it is too late for both the indicators to give the signal.
03:16Well, it would have been better if we would have got the opportunity to place the entry a little earlier, but still it seems here that the downtrend will continue, because the market can go up to the support zone.
03:28You will get to see something new in every entry, hence its practice is also necessary.
03:36Good, here the market has shown the same movement and our second entry has also won here.
03:41So here we will wait a little so that the cross is formed properly, and we get proper signals from parabolics R as well.
03:54So now we can place an entry here.
03:57Here the dots of parabolics R are formed above the candles, this is indicating about the bearish signal, and also the green line of the moving average has crossed the white line in the downward direction,
04:09this means that now the downtrend has started in the market, and if we see overall, then here the market is going down taking resistance, and now the support zone is very low.
04:21While placing a trade, keep in mind the support and resistance along with the indicators as this increases the winning ratio considerably.
04:29And great, our entry has won easily here too, this strategy is amazing.
04:41So here the indicators have given us a signal in the downward direction, but the movement of the candles is going in the upward direction, perhaps this could be a small throwback, after this the market can continue the downtrend.
04:53So here both the moving average lines have crossed each other in the downward direction, and the fractal SAR has also indicated in the downward direction, but in this chart, I see the movement of the candles going against our entry, sometimes we have to face losses even after placing the entry correctly, that is why management is important, and I feel that maybe our entry here is going to lose.
05:18Unfortunately our entry lost here, so here the indicators have provided signal in the downward direction, so here both the lines of moving average have crossed each other in the downward direction, so this is a bearish signal, and one important thing is that the market has broken this support, so now there are more chances of the market moving mostly in the downward direction.
05:48So here we placed a double entry to recover the loss we had incurred in the previous trade. And in the last few seconds the market was close to the entry point, but our entry has easily won here.
06:06So here the moving average lines have crossed in the upward direction, and provided an upward signal, and at the same time the parabolic SAR has also provided the bullish signal, so now there is a high possibility of the market going up.
06:27So the strategy is amazing, you should try it in the demo account. After practicing you can get a lot of benefits.
