9# Parabolic Sar and ADX Trading System

Submit by ForexStrategiesresources

 

Setup

Any currency pair and time frame can be used.


I
ndicators:

Parabolic SAR default settings (0.02, 0.2),

ADX 28 (with +DI, -DI lines)

 

Long Entry Position:

With ADX >13 the +DI line is above the -DI line, and Parabolic SAR gives buy signal. When the +DI line is below the -DI line, all Parabolic buy signals must be ignored.

Short Entry Position:

 With ADX >13 the +DI line is below the -DI line, and Parabolic SAR gives sell signal. When the +DI line is above the -DI line, all Parabolic sell signals must be ignored.

 

Exit Orders:

a) when +DI line and -DI lines have crossed again.

b) Our initial stop when long will be 4 pips below the two-bar low; our initial stop when short will be one point above the two-bar high.


c) When long, we'll trail a stop at the most recent swing low (strength one); when short, we'll trail a stop at the most recent swing high (strength one).

d) We'll also enable a money-management stop, a breakeven stop, and a $ risk trailing stop.

e)aggressive Take Profit.


 

In the pictures below Parabolic Sar and ADX Trading System in action.

 

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