However, there are no specific rules about the period of your moving average. However, we will focus on EMA as it provides good profitability based on swing trading ideas. In an uptrend, dots remain below the price and indicates a bullish pressure once the price is rejected from these dots.

Similarly, in a downtrend, the dots form above the price, and the price starts to move once it gets rejected from the parabolic SAR. This is why the parabolic SAR is considered as a stop and reverse indicator. Furthermore, the parabolic SAR has a built-in stop-loss function. Once the price moves up or down with a new candle, the parabolic SAR changes with the price.

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Therefore, you can move your stop loss once the price creates a new higher or lower low. If we use a period exponential moving average, we can catch the major trend direction from the minor correction. The forex market Moves Like a zigzag. Therefore, there is a minor correction in a major bullish trend and minor bullish correction in a major downtrend.

If we know the major trend, we can quickly enter the trade from a correction to get the maximum reward from the minimum risk. In the forex market, parabolic SAR usually provides trading signals earlier than expected, which might create a negative impact on your trading result. Overall, any trend following indicator does not provide a good result when the price moves within a range.

Therefore, it is essential to filter out the conditions where the market is moving within a range. We can eliminate the unexpected market behavior by using the moving average as it will provide a more significant trend that will prevent over-trading.

Super EMA Breakout Forex Strategy

In the image below, we can see how the parabolic SAR provides false trading signals when the market moves within a range. In the ranging market, it would be difficult to make a profit using this trading strategy.

Therefore, it is better to use the moving average to get the overall direction of the trend. Every trading strategy has its unique rules. Overall, we will follow simple rules as Complex trading rules make it challenging to implement it on the chart. You can make good profits with a simple trading strategy if you can utilize it well with appropriate trade management and money management rules.

The moving average with the Parabolic SAR trading strategy works well in all timeframes from 5 minutes to weekly charts. The longer timeframe will provide better trading results. Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance or above the purple line.

MACD & EMA Trading Strategy || Profitable Forex Strategy

The 48 EMA is an exponential moving average that has its period set at 48 and reduces the lag by adding more weight to recent price. The MadroGoldenFilter indicator is made up of some arrows on the top row, stars like figures in the middle, colorful square box below that and main filtering tool at the bottom. If the goldenrod upward pointing arrow of the MadroGoldenfilter custom indicator is displayed within its indicator window, the momentum in the market is said to bullish, hence a signal to buy the forex pair of interest.

If a dark gray downward pointing arrow of the MadroGoldenfilter custom indicator pops up during a buy alert as shown on Fig. Sell Entry Rules Initiate a sell entry if the following holds true: If price breaks below the magenta line of the 48 EMA, while also intersecting the blue and red lines of the pips Momentum custom indicator top downward, price is said to be pushed lower i.

If the dark gray downward pointing arrow of the MadroGoldenfilter custom indicator is displayed within its indicator window, the market sentiment is said to be bearish, hence a signal to sell the forex pair of focus.