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SAR Forex Day Trading Strategy

Amandeep Sonewane | Jun. 11, 2019
SAR Forex Day Trading Strategy

You can now download the SAR Forex Day Trading Strategy for free on AtoZ Markets indicators gallery.

SAR Forex Day Trading Strategy would be set up on the 5-minute chart. Some traders think of this timeframe as a scalping timeframe, but it is as a day trade due to the length of time we hold trade in this time frame.

To determine the trade direction, use the SAR. If the price is above the SAR, then we should be looking for buy trades. If the price is below it, then we are looking to sell.

Two moving averages would be the 5 (green) and 15 (brown) Exponential Moving Average. This will serve as a filter and a dynamic area of support and resistance. On an uptrend, the 5 EMA should be above the 15 EMA, while on a downtrend, the 5 EMA should be below the 15 EMA. Then we look for closes between the two EMAs, then closes back out of it on the direction of the trend.

How to trade with SAR Forex Day Trading Strategy?

This strategy has a fixed 1:1 reward-risk ratio. However, this is still in effect a negative reward-risk ratio since we haven’t covered the commission and spread yet. This is an area which you could tweak to your liking. However, this is somehow more of a conservative target so as to yield a higher win-loss ratio.

Buy Entry:

  • Price should be above the SAR
  • 5 EMA (green) should be above the 15 EMA (brown)
  • Wait for price to close between the 5 & 15 EMA
  • Then wait for the price to close back above the 5 EMA
  • Enter a buy market order at the close of the candle

Stop Loss: Set the stop loss at the low of the candle

Take Profit: Set the take profit at 1x the risk on the stop loss

Sell Entry:

  • Price should be below the SAR
  • 5 EMA (green) should be below the 15 EMA (brown)
  • Wait for price to close between the 5 & 15 EMA
  • Then wait for the price to close back below the 5 EMA
  • Enter a sell market order at the close of the candle

Stop Loss: Set the stop loss at the high of the candle

Take Profit: Set the take profit at 1x the risk on the stop loss

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on “Download Indicator” button located at the top right corner of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select “SAR Forex Day Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.

Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.