PARABOLIC SAR AND CCI STRATEGY

PARABOLIC SAR AND CCI STRATEGY

The Parabolic SAR and CCI indicator form the foundation of this forex scalping approach, emphasizing trend momentum. Employing the Parabolic SAR and Commodities Channel Index (CCI), this strategy is fine-tuned with the assistance of the Simple Moving Average (SMA) and CCI. The recommended currency pairs for application are EUR/USD, AUD/USD, and GBP/USD across all time frames.



Indicators

50-period SMA
CCI (45)
Parabolic SAR (0.01, 0.1)

Buy

Initiate a long position when the Parabolic SAR dot is above the SMA, and the CCI (50) is greater than 100.

Sell

Initiate a short position when the Parabolic SAR dot is below the SMA, and the CCI (50) is less than -100.

Exit Position:

Set the stop loss above/below the Parabolic SAR dot. Aim for a profit target with a minimum ratio of 1:0.8 relative to the stop loss. This strategy incorporates sound risk management principles to guide both entry and exit decisions.

This is a good example of a strategy where by applying good money management, it becomes very effective.

My advice is to apply this technique at high time frames to learn it, but it must be said that you can immediately have excellent results.