Forex Swing Trading Strategy #10:(Parabolic SAR And MACD Swing Trading System)

The Parabolic SAR and MACD Swing Trading System is a very simple forex swing trading system that uses two indicators:

• the parabolic SAR &
• the MACD

This trading system can be used with any currency pair.

HOW TO TRADE THE PARABOLIC SAR AND MACD SWING TRADING SYSTEM-THE RULES

1. Wait for MACD line to cross-over. Once The MACD lines have crossed over then
2. Look To See If the Parabolic SAR has also switched position on  the chart. If It does so then
3. Place A Buy stop/sell stop order above the high or low of the candlestick at the point where both the MACD & Parabolic SAR confirm trade entry signal.
4. Your stop loss should be placed below the low or high of that candlestick-anywhere from 5-30 or so pips depending on what timeframe you are using as well-the larger timeframe you use, the stops may be a bit larger so you need to adjust your risk per trade accordingly.
5. To Exit The Trade(Take Profit)-when an  opposite trade entry signal is given, then you exit the trade.

ADVANTAGES OF  THE PARABOLIC SAR AND MACD SWING TRADING SYSTEM

• It is a very simple and easy forex swing trading system to use
• you can easily spot the trade setups happening
• in a nice trending market, you will make a lot of pips quite easily.

DIADVANTAGES OF  THE PARABOLIC SAR AND MACD SWING TRADING SYSTEM

• You will get stopped out frequently if the forex market is in consolidation (or moving in a sideways trend)
• The MACD & Parabolic SAR are both lagging indicators so your trade entries are based on lagging information when price would have made a big move already.
• you stop loss may be quite large. If you place your stop losses quite close, you may get stopped out frequently.