MACD Parabolic SAR Indicator

MACD Parabolic SAR Indicator for MT5

Introduction to the MACD Parabolic SAR Indicator

The MACD Parabolic SAR Indicator is, as the name suggests, a combination of Moving Average Convergence Divergence and Parabolic SAR. Both forex indicators are well-known and appreciated by traders around the world. Making a single forex indicator out of these two results in a highly-effective trading tool.

The MACD Parabolic SAR Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window placed just below the main trading chart. The default settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.

How does it work? How to apply in trading?

Trading Rules Explanation

The MACD Parabolic SAR Indicator displays green and pink dots above and below MACD lines. Green dots indicate bullish trend-momentum, and similarly, red dots reflect a bearish trend-momentum. Considering it is a trend-following indicator, it works best during strong market swings.

Buy Signal

Follow these steps for a long trade:

  • MACD Parabolic SAR indicator dots switch from pink to green
  • Price swings higher from recent low swing
  • Buy trade is triggered after the first candle meeting above conditions
  • Set stop loss a few pips below the last swing low of the market
  • Take profit or exit whenever the MACD Parabolic SAR indicator provides opposite signal or use your own method of trade exit

Sell Signal

Follow these steps for a short trade:

  • MACD Parabolic SAR indicator dots switch from green to pink
  • Price swings lower from recent high swing
  • Sell trade is triggered after the first candle meeting above conditions
  • Set stop loss a few pips above the last swing high of the market
  • Take profit or exit whenever the MACD Parabolic SAR indicator provides opposite signal or use your own method of trade exit

As always, to achieve good results, remember about proper money management. To be a profitable trader you need to master discipline, emotions, and psychology. It is crucial to know when to trade, but also when not to trade. Avoid trading during unfavorable times and market conditions like low volume/volatility conditions, beyond major sessions, exotic currency pairs, wider spread, etc.

How to set up the MACD Parabolic SAR indicator in MT5?

Installation Guide

Download the MACD Parabolic SAR.rar archive at the bottom of this post, unpack it, then copy and paste the MACD Parabolic SAR.ex5 or MACD Parabolic SAR.mq5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.

You can gain access to this folder by clicking the top menu options, which goes as follows:

File > Open Data Folder > MQL5 > Indicators (paste here).

Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.

Bottom Line

The MACD Parabolic SAR indicator is well worth adding to your trading collection. A good forex indicator will most probably enhance your chance of success. Nonetheless, remember about having realistic expectations. Just like any other technical analysis tool, is not capable of providing accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your own trading system based around it. Don’t forget that we still have more great free forex indicators to try.

Download Free Forex MT5 MACD Parabolic SAR Indicator

To download the MACD Parabolic SAR Indicator for Metatrader 5 (MT5) for free just click the button below:

MACD Parabolic SAR Indicator Free Download

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