Forex VPS
Forex VPS
ForexFunction Logo

"Forex trading involves a high level of risk"

Forex VPS
 Market Comments |  Technical Indicator Signals |  Cross Pair Rates |  Live Spread |  Live Charts |  Daily Pivot Points
Trading strategy with Parabolic SAR and Stochastic - Forex Function

Trading strategy with Parabolic SAR and Stochastic

Last Update: 18 February,2015
Print PDF

This trading strategy has been developed by Stochastic Oscillator and Parabolic SAR. These two indicators have been used for many profitable strategies. In this simple strategy you will get buy or sell signal by the combination of these indicators. This strategy is profitable for the trendy market.

Required indicator:
(1) Stochastic Oscillator
(2) Parabolic SAR indicator.

How to get buy signal
20 level of Stochastic Oscillator is considered as oversold area. At that level, when Stochastic makes crossover in the up direction, then it gives buy signal. You need check at Parabolic SAR. When the dots of Parabolic SAR appear below the market price, then it confirms buy signal. Thus you can take buy entry with the confirmation of these two indicators.

How to get Sell signal
80 level of Stochastic Oscillator is considered as overbought area. When Stochastic makes crossover at that level, then it gives sell signal. At the same time, you need to check at Parabolic SAR. When the series of dots of this indicator appear above market price, then it confirms sell signal. Thus you can get sell signal with the confirmation of these two indicators.


Time frame: H1, H4, Daily

Currency pairs: All pairs.

Take profit and Stop loss: Take profit will depend the time frame you are trading. For H1, you can set 50-60 pips take profit. For higher time frame, you can set 80-150 pips take profit. You can close your trade manually when reversal signal comes.
Stop loss should be place below swing low for buy entry. Similarly, for sell entry, stop loss should be place above swing high.

Risk warning: You can get false signal in ranging market. So you need to avoid this strategy on ranging zone. You must follow money management theory for following this strategy. To get good result from this strategy, you need to practice this on your demo account before using on your real account.

Submit Your Comments:

 Forex Trading VPS


Windows 2008/2012 | Server Location Amsterdam, France, Canada | Low Latency From Brokers| Super Fast Trading Experience | All types of EA supported | 3 Days Money Back Guarantee

Plan NameBuy Link CPU RAM Disk BandWidth Price (Montly)Price (Quarterly)Price (Semi-Annually )Price (Annually) InstallationBackUpSetup Fee
Economy buy now2 Core 756MB 15GB 1TB $6.50/M$6.20/M$5.90/M $5.50/M MT4 Pre-InstalledYesFree
Standard buy now 2 Core 1GB 25GB 1.5TB $8.50/M$8.20/M$7.90/M $7.50/M MT4 Pre-InstalledYesFree
Premiumbuy now 2 Core 2GB 40GB 2TB $16/M$15.50/M$15/M$14.50/M MT4 Pre-InstalledYesFree
Advanced buy now4 Core 3GB 60GB 2.5TB $26/M$25/M$24/M $22/M MT4 Pre-InstalledYesFree
Professionalbuy now 4 Core 4GB 80GB 3TB $33/M $32/M$31/M$29/MMT4 Pre-InstalledYesFree
Business buy now 4 Core 6GB 100GB 4TB$46/M $45/M$44/M$42/MMT4 Pre-InstalledYesFree
Platinum buy now 4 Core 8GB 120GB 6TB $59/M $58/M$57/M$55/M MT4 Pre-InstalledYesFree
Diamond buy now 4 Core 12GB 180GB 8TB $89/M $87/M$85/M$81/MMT4 Pre-InstalledYesFree

***We accept Neteller, Skrill, MasterCard, Paypal, Payza, Perfect Money, Webmoney !