Forex Trading Strategy using EMA & PARABOLIC SAR Indicator

hello and welcome to video 2 of your training in this video, I want to help you get your charts set up and just give you a very basic overview of what this system is to begin with you’re going to want to make sure that your charts look as close to ours as possible it’ll make it easier to follow along, so before we actually add any indicators to the chart I’m going to show you this on Metatrader in just a second but, I want to give you an overview now open up a chart and Metatrader right click on the chart and select properties and, then change the background of the window to white change the bull candles to green and change the bear candles to a red color and that will ensure that it looks close to the same as our charts and make it easier for you to follow along and, then once you’ve done that we’re going to add some indicators into the charts themselves we’re going to add an EMA 5 or an exponential moving average 5 . we’ll make this one blue on the charts, then we’re going to add an EMA 12 an exponential moving average 12 . and we’ll make this one green and, then finally we’re going to add a parabolic SAR or stop and reverse indicator and that will be the last indicator we add to the charts when you’re adding these indicators just to give you a quick overview of how this works with Metatrader you just right click or click on the chart indicator button at the top or the right there the F with the plus that’s your Forex indicator button to add to moving average you would select trend and, then moving average and, then to add your parabolic SAR again it’s the same button it’s under trend and, then parabolic SAR, so let’s take a look at this on the charts themselves and we’ll get these set up and saved for you, so that you have easy access to these charts and can use them all the time ok, so with the Metatrader platform open all you need to do is select a currency pair from the left hand side in the market watch bar right click on any symbol in here the US dollar Japanese yen for example and, then just click on chart window with the left mouse button and that will bring up a black chart that probably looks just like this the first thing we want to do is we’re going to work with candlesticks in this system, so switch it to candlesticks and, then I’m just going to zoom in a bit here to make it easier to follow along, so here’s what my chart looks like now I’m going to right click on this chart and I’m going to click properties and, I want to set my background color to white I’m probably going to set my foreground color to black and that will make my prices and dates to show up in the right colors and then, I want to select the bull candle and switch it to green doesn’t really matter what color green and bare candle and we’ll make that one red and, then we’re going to just switch these bar up and bar down to the same colors green up red down and, then once we click OK our charts will look like this and we have a nice white background with green when the currency pair is moving up and red when it’s moving down now we need to add some indicators to this chart again the indicator button is just up at the top of Metatrader we click on the little arrow down we go to trend and the first thing we’re going to add is a moving average and we’re going to add a 5 period, so we type in 5 beside period we make sure that exponential is selected in the moving average method we don’t want a simple moving average we want the exponential moving average and we’re going to make this one blue in color, so just select the blue color and finally when I do this I like to have my lines big enough to show up, so I select the second one on there and, then I click OK now I get a nice blue moving average on there we’re going to do that again for the 12 period moving average, so again we just select moving average from the indicator list we’re going to enter 12 this time and we’ll make this one a green color again ensure that it’s exponential moving average and not simple and, then just select a line size and click OK, so now we have two moving averages on our charts and last indicator we want to add is the parabolic SAR, so we click the button again go to trend and, then find parabolic SAR and just click that leave the step and the maximum as they are, but make sure that you select a color that will show up on a white background you could select black, if you want to which is what I’ve down here and again I’ve selected the second line, so that I can ensure I see them I click OK and that adds these dots to your charts and you’ll understand what all of this stuff means as we move through the next two videos, but there’s your charts they look nice like that the last thing we want to do is save these to do that we’re going to right click on the chart we’re going to scroll down to template and mouse over that and, then we’re going to click on save template and you can call this whatever you want I’m going to call it trading system – and I’m just going to click Edit press Enter or click save and that will save my chart now I can apply this chart to any chart window let’s just open a new one here opening the US dollar Swiss franc pair chart I can right click on my chart now I can go to template and I can go to trading system to which I just saved, and, if I click on that there’s our charts we can apply this to any chart at any time simply by right clicking and selecting the template from the name you saved on this list here okay, if you follow it along with Metatrader you should have your new charts that look like this, and, if you saved your charts as I suggested by right-clicking on the chart and saving the template you should be able to apply those charts to any chart as we go through this system it doesn’t matter which currency pair you open up you can just right click and load that template, so let’s just talk a little bit about this system before we move on and start talking about short trades and long trades in the next videos this system is a trend system in particular though it’s a trend system that catches trends on the reversal by trading with the trends we increase our chances of winning on the trades and when you’re starting with this system it’s best to start out with the one-hour charts, so for right now open up a one-hour chart in Metatrader you can be any currency pair you want for following along in the examples for example you might use the euro US dollar to begin with and, then apply your new chart to it select the template as I showed you right click on the chart and select the template name and, then move on to the next video and we’re going to talk about the rules of short trades give you some real examples of short trades, so you can get started with this system using your new charts hello and welcome to video 3 of your training in this video we’re going to talk about making short trades with the trading system and to begin with let’s just talk about the basic rules the system is actually quite simple to use once you learn it and learn to use it well it will be quite a profitable system for you that doesn’t take a lot of forex knowledge to get started with first of all we enter a short sell trade that’s a sell trade when these two conditions happen the EMA five crosses over, so that it is below the EMA 12, so on your charts that’s the blue line crossing below the green line and the parabolic SAR dot appears above the price candlestick at the same time this happens and we’re going to look at this and the charts in just a second and give you some real examples once we have those two conditions happen we enter the trade we set a stop loss at 50 pips and we exit the trade when the parabolic SAR dot appears below the price candlestick we’ll give you some examples of this, so, if it doesn’t make sense just yet it will in a minute alternatively as an alternative exit strategy instead of exiting when the SAR dot appears below the price we can trail the stop at 50 pips and ride the trend when you’re just starting out this is the easy way to do it as you gain more experience you might want to try this alternative way of exiting the trade as it can lead to more profits, but sometimes it doesn’t, so stick with this one when you’re just starting out, so let’s look at this on a chart here and, then we’ll actually go on to meta trader and show you some real short trade examples, so I’ve got a chart here we’re looking for two conditions to enter a trade we need the EMA v to cross over, so that it is below the EMA 12 and looking on this chart the blue line has crossed under the green line, so that condition is met and when that happens we need the parabolic SAR dot to appear above the current price candlestick and just going up right above that point the parabolic SAR dot is right there, so at that point that’s our indication to enter the trade also let’s do that when we enter the trade we enter at that point we enter the sell trade and we set a stop loss and this is to protect us in case things don’t go our way 50 pips back from the entry point and, then once we’re in the trade we exit the trade when the parabolic star dot appears below a candle, so in this case we entered the trade up here and we stayed in the trade all the way until the parabolic SAR dot appeared below the candle on the bar or on the chart and alternatively we could have trailed a stop at 50 pips in this case it probably wouldn’t have made much difference for profitability, but for when you’re starting out use this exit strategy it’s the simplest let’s take a look at this and look at some real trade examples on meta trader okay, so let’s just look at an example trade here on the charts I’m looking at the euro US dollar chart on the one-hour time frame which is what you should be using the system in especially when you’re starting out the 1-hour is the easiest to trade with this system and just taking a look here we first need to look for eye criteria and the criteria is quite simple in this case we’re looking for the EMA 5 which is the blue line to cross over the EMA 12 which is the green line and to fall below it, so that’s happened it’s crossed down under the EMA 12 and the EMA 5 is now below the EMA 12 at this point to be a valid entry signal we need the parabolic SAR dot to appear above at the same time above that candle at the same time that the crossover happens, so in this case that happened and we have our entry signal here, so now we enter the trade we enter a sell trade or enter short and we set a stop loss we entered this trade at one point three seven four nine and we set our stop loss 50 pips above that for a sell trade, so we add 50 pips which would make our stop-loss one point three seven nine for this trade and in this case we just stay in the trade managing this trade is quite simple we stay in it until the point gets down here where the parabolic SAR dot appears below a candle that actually happened we exited this trade at one point three five six as when that happened, so quite a profitable trade that’s a hundred and ninety three pips and the trade itself lasted from February seventeenth till the beginning of the day on February 18th, so 193 pips in one day with that trade let’s take a look at another example here okay, so looking at the US dollar Swiss franc on the one-hour chart again we’re looking for our indication to enter the trade and once again that happens when the blue line which is the EMA five crosses below the Green Line which is the EMA 12, so that has happened at this point and when that occurs we need the parabolic SAR dot to appear above that candle and that happened in this case in this trade we entered at one point zero four five four and we set our initial stop-loss 50 pips above that for a short trade, so we add 50 pips and we set our stop loss to one point zero five zero four and in this case the trade moved in our favor and it continued on our way throughout the day on January 21st and continued until this point when the dot appeared below the candle that’s when we exit the trade, so we exited this trade at one point zero three eight nine, so this was a 65 pip trade and it took less than a day to complete this trade, so again another profitable trade and a good example of how to use this system for short trades with some examples out of the way you should now move on to video for to watch the rules for long trades and we’ll give you some real examples again largely the rules are the same they’re just reversed for long trades, but you should watch the video anyway and, then once you’re done watching that video start to make practice trades for both short and long trades on the Metatrader platform you can do this with historical data kind of like I just showed you in the examples where you can use your practice account and make live trades with the practice account until you get familiar with your system doing, so will ensure that your comfort with this trading system and you will profit more over the long term hello and welcome to video four of your training in this video we want to talk about long trades or buy trades and we’re just going to show you how to use this forex trading system to make long trades and we’ll give you some real examples as well to begin with let’s just talk about the rules for long trades as I said in the last video these are largely the same as for short trades they’re just reversed we look for two criteria before entering a buy trade we do, so when these two conditions happen the EMA five crosses over, so that it is above the EMA 12, so on your charts it’s the blue line crossing over the green line and it is now above the green line and, then we wait for the parabolic SAR dot to appear below the price candlestick at that point of the crossover, so once we do that we enter the trade and when we enter the trade we place a protective stop-loss at 50 pips and to exit the trade we exit the trade when the parabolic star dot appears above the price candlestick again you can use the alternative exit method of trailing the stop at 50 pips when you’re just starting out this method is the simplest, so that’s the method that I’m going to use any examples, so let’s look at this here and, then we’ll show you some real examples on the charts also looking at this chart here we first need to look to see that the EMA 5 crosses above the EMA 12 which it has done here and at that point we need the parabolic SAR doc to appear below that candle where the crossover occurred, so again that’s happened in this case, so we’re ready to enter the trade we enter the trade at the point where this occurs and we set a stop-loss 50 pips back, so we enter our buy trade our stop-loss as 50 pips behind and, then we’re ready to manage the trade as we’re in it we exit the trade we stay in this trade until the parabolic star dot appears above the candlestick which in this case happened here and alternatively, if you wanted to use the other method of exiting a trade with this system you could trail your stop at 50 pip and hopefully write out the trend when you’re just starting out use this method exit the trade when the parabolic dot appears above a candlestick let’s take a look at this on some real charts and Metatrader and show you some real examples of long trades okay, so looking at an example trade that we made in January this one is on the euro US dollar chart this one is a one-hour chart again and again we start by looking for our criteria to enter a trade in this case we’re looking for the EMA 5 which is the blue line to cross above the EMA 12 which has happened at this point and at the same putt time we’re looking for the parabolic SAR dot to appear below the candle just after the crossover or at the same point as the crossover which has happened here, so we now have our criteria to enter the trade, so we buy in we enter a buy trade and we set our stop loss of 50 pips behind, so we entered this one at one point four three two three which is the point where the parabolic SAR dot appeared and we set our stop loss 50 pips behind to one point four to seven three and again in this case managing the trade is quite simple we simply stay in this trade leave our stop loss at 50 pips behind stay in the trade until a parabolic star dot appears above that candlestick, so that happened way up here and we exited our trade at one point four five three zero, so in this case that’s a 207 pip profit and this particular trade lasted from January 8th about midday on January 8th through to the afternoon on the 11th, so in three days we earned 207 pips on this trade and let’s take a look at one more example here okay looking at another example we’re looking at the US dollar Japanese yen again on a one-hour chart and once again we’re looking for our criteria to enter the trade we’re looking for the EMA 5 to cross over the EMA 12, so that it is above it and in case it happens here the blue line crosses to be above the green line, so that’s our first criteria and, then we look for the parabolic SAR dot to appear below the candle and that happened on this bar here, so in this case we entered our long trade at eighty nine point seven nine and when we entered the trade we set our stop loss 50 pips back to eighty nine point two nine, so now we’re in the trade we simply manage the trade as per our rules in this case we simply stay in it until a parabolic SAR dot appears above a candlestick and in this case it happens at ninety point four zero, so in this case we made sixty-one pips and the trade itself lasted just five or six hours I wanted to show this as the last trade example in this video for one simple reason this is one of those cases where using the alternative method to exit the trade may have worked well none of these bars in here is over 50 pips the way I just presented it was the way we actually made the trade, but as you gain more experience, if you want to use an alternative exit strategy and trail your stop 50 pips behind you would use a trailing stop and your stop would move up as the price did and at this point you would have come close to stopping out, but it wouldn’t have quite happened and in fact with this particular trade you wouldn’t have stopped out until a few days later about this point, so drawing a line there you would have stood to make about ninety one point four zero would have been the exit point, so it would have been a hundred pips instead of sixty one just something to note that it can be worth using the exit strategy the other exit strategy as you gain more experience with this system as you’re starting out use the one that we showed you with the parabolic SAR dot it’s easy and, then as you gain some more experience try trailing your stop try it with one or two currency pairs when you’re starting out and see, if you can squeeze more profits out of your trades that way now that you’ve watched some example trades of both short trades in the last video and long trades in this video move on to video to learn about the timeframes you should be using that will work with this particular trading system we’ll talk about currency pairs and we’re going to talk about money management which is very important to your success in forex overall and, then once you’re done watching that video make sure that you take the time to practice both short and long trades on the Metatrader platform until you’re completely comfortable using this system doing, so will ensure that you profit more.

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