As the name suggests, the MACD Parabolic SAR MT5 Forex Indicator mixes Moving Average(MA), Convergence Divergence, and Parabolic SAR. Both mt5 forex indicators are well-known and appreciated by traders around the world. Making a single mt5 forex indicator out of these two results in a highly-effective mt5 trading tool.
The MACD Parabolic SAR MT5 Forex Indicator fits all kinds of timeframes and currency pairs. It is displayed in a separate window below the main Forex trading chart. The indicator settings can be modified directly from the input tab. Feel free to try with the settings and parameters to fit your preferences.
How does it work? How to apply in trading?
Trading Rules Explanation
The MACD Parabolic SAR mt5 Forex Indicator displays green color and pink dots above and below MACD lines. Green dots indicate a bullish trend momentum; red dots reflect a bearish trend momentum. Considering it is a trend-following mt5 indicator, it works best during strong forex market swings.
Buy Signal
Follow these steps for a long trade:
- MACD Parabolic SAR forex indicator dots switch from pink color to green
- Price swings higher from recent chart low swing
- Buy-entry trade is triggered after the first chart candle meets the above conditions.
- Set stop loss(SL) a few pips below the last chart swing low of the market.
- Take profit(TP) or exit whenever the MACD Parabolic SAR indicator provides the opposite signal, or use your method of trade exit.
Sell Signal
Follow these steps for a short trade:
- MACD Parabolic SAR mt5 forex indicator dots switch from green color to pink
- Price swings lower from recent chart high swing
- The sell-entry trade is triggered after the first chart candle meets the above conditions.
- Set stop loss(SL) a few pips above the last swing high of the market.
- Take profit(TP) or exit whenever the MACD Parabolic SAR mt5 forex indicator provides the opposite signal, or use your method of trade exit.
As always, to achieve the best results, remember about money management. To be an excellent profitable trader, you must master emotions, discipline, and psychology. It is essential to know when and when not to enter trade. Avoid trading during unfavorable times and market conditions like low volume/volatility, beyond major sessions, exotic currency pairs, wider spread, etc.
Set up the MACD Parabolic SAR forex indicator in MT5.
Installation Guide
Download the MACD Parabolic SAR.zip archive at the end of this post, unzip 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.
Read More High Accuracy Advanced Forex MBFX Trading Indicator System
Bottom Line
The MACD Parabolic SAR mt5 forex indicator is worth adding to your trading collection. A good forex indicator will enhance your chance of success. Nonetheless, remember to have realistic expectations. Like any other technical mt5 analysis tool, it cannot provide accurate signals 100% of the time. Thus, this forex indicator provides false entry signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your trading system based on it. Don’t forget that we still have more great free forex indicators to try.
