About the Parabolic SAR MTF Indicator
The Parabolic SAR MTF Indicator is a classic trend-following tool enhanced with multi-timeframe functionality for MetaTrader 4.
It is designed to help traders identify potential entry and exit points based on price momentum and directional movement.
By plotting PSAR dots directly on the chart, the indicator provides immediate visual feedback on trend direction.
A green dot signals bullish conditions and suggests potential buying opportunities.
A red dot signals bearish conditions and highlights possible selling opportunities.
These dots adjust dynamically as price moves, allowing traders to stay aligned with current market momentum.
The multi-timeframe feature allows traders to analyze PSAR signals from higher or lower timeframes without switching charts.
By default, the indicator uses the current timeframe, but this can be changed easily from the inputs tab.
For best results, the Parabolic SAR MTF Indicator is often combined with additional analysis tools to filter signals and improve trade accuracy.
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Key Features
- Parabolic SAR dots are plotted directly on the trading chart.
- Green dots indicate bullish momentum and buy signals.
- Red dots indicate bearish momentum and sell signals.
- Multi-timeframe analysis from a single chart.
- Customizable timeframe selection via the inputs tab.
Indicator Chart
The Parabolic SAR MTF Indicator chart displays a series of colored dots that track price movement.
Green dots appear below price during upward trends, while red dots appear above price during downward trends.
This layout helps traders quickly identify trend direction and potential reversal points.
Guide to Trade with Parabolic SAR MTF
Buy Rules
- Wait for a green Parabolic SAR MTF dot to appear on the chart.
- Confirm price is moving above recent consolidation.
- Check higher timeframe PSAR direction using the MTF setting.
- Open a buy trade after the signal candle closes.
Sell Rules
- Wait for a red Parabolic SAR MTF dot to appear on the chart.
- Confirm price is trading below recent support.
- Validate bearish direction on a higher timeframe PSAR view.
- Open a sell trade after the signal candle closes.
Stop Loss
- Set the stop loss a few pips below the most recent PSAR dot for buy trades.
- Set the stop loss a few pips above the most recent PSAR dot for sell trades.
- Allow extra room during volatile market sessions.
- Adjust the stop as new PSAR dots form in your favor.
Take Profit
- Target nearby support or resistance zones for exits.
- Use a fixed reward multiple based on the initial stop distance.
- Trail profits by following the PSAR dot progression.
- Exit the trade when the PSAR dot flips color.
Parabolic SAR MTF Indicator + Zero Lag MACD Scalping Strategy (MT4)
This scalping strategy for MT4 combines the Parabolic SAR MTF Indicator with the Zero Lag MACD Indicator.
The Parabolic SAR MTF draws green dots to indicate a bullish trend and red dots for a bearish trend.
The Zero Lag MACD gives a signal based on its histogram: when the MACD is above zero, it’s bullish; when it is below zero, bearish.
This strategy is suitable for scalpers on M1 and M5 charts who want small, frequent trades with a reliable filter.
Buy Entry Rules
- On the M1 or M5 chart, first confirm that the Parabolic SAR MTF shows a green dot, signaling a bullish trend.
- Check the Zero Lag MACD: ensure the MACD histogram or line is above zero, confirming bullish momentum.
- Enter a long trade when both conditions are true at the close of a candle.
- Set a stop loss a few pips below the most recent swing low or below the green SAR dot.
- Set take profit fairly tight: for M1, aim for 5–10 pips, for M5 consider 10–20 pips depending on volatility.
- Optionally trail your stop loss: as the price moves, you can move your stop to just under any new Parabolic SAR dot.
Sell Entry Rules
- On M1 or M5, check that the Parabolic SAR MTF shows a red dot, signaling a bearish trend.
- Confirm the Zero Lag MACD is below zero, indicating bearish momentum.
- Enter a short trade at the close of a candle when both indicators align.
- Place a stop loss a few pips above the recent swing high or above the red SAR dot.
- Take profit: on M1 target 5–10 pips, on M5 aim for 10–20 pips, depending on current volatility.
- You may trail your stop by moving it just above any new red SAR dot as the price drops.
Advantages
- The Parabolic SAR MTF trend dots help filter trades in the right direction.
- The Zero Lag MACD adds momentum confirmation, so scalps are less likely to fail.
- Tight stop‑losses and quick targets make this suitable for fast, disciplined scalping.
- Trailing the stop with SAR allows locking in gains while the price moves in your favor.
- The strategy works on very short time frames (M1 and M5), which means more trading opportunities.
Drawbacks
- MACD may lag slightly before it crosses above or below zero, delaying entry.
- Frequent small trades can lead to overtrading and increased transaction costs.
Case Study 1
During the London session on EUR/USD (M1), the Parabolic SAR MTF placed a green dot below the price, signaling a bullish trend.
At the same time, the Zero Lag MACD moved above zero, confirming upward momentum.
The trader entered a long position at the close of that candle, placing a stop loss a few pips below the green SAR dot.
Within minutes, the price moved steadily upward and reached the 8-pip target.
As the trend continued, new green SAR dots appeared below the price, allowing the trader to trail the stop and capture additional pips before exiting, resulting in a smooth and profitable trade.
Case Study 2
On USD/JPY (M5) during the London–New York overlap, the Parabolic SAR MTF placed a red dot above the price, signaling a bearish trend.
At the same time, the Zero Lag MACD crossed below zero, confirming downward momentum.
The trader entered a short position at the close of the candle, setting the stop loss just above the red SAR dot.
Price declined steadily over the next few candles, reaching the 15-pip take profit target.
As the downtrend continued, additional red SAR dots appeared above the price, allowing the trader to trail the stop and remain in the trade as long as momentum stayed strong.
The trade closed smoothly with maximum capture of the move, demonstrating the effectiveness of trend and momentum alignment.
Strategy Tips
- Use a broker with low spreads and fast execution, because tight targets leave little room for slippage.
- Scalp primarily during active sessions (London and New York) to improve the chances of follow‑through moves.
- Manage risk by limiting the number of scalps per hour; aggressive scalping can drain your account quickly if uncontrolled.
- Practice this strategy on a demo account first to get used to combining the SAR dot signals and MACD momentum on M1 and M5.
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Download the “Parabolic SAR of MA mtf.ex4” Metatrader 4 indicator
FAQ
How does the Parabolic SAR MTF differ from standard PSAR?
The MTF version allows traders to display PSAR signals from different timeframes on one chart.
This helps align entries with higher timeframe trends without changing charts.
Which timeframe setting should I use?
Using the default current timeframe works well for most strategies.
Many traders prefer setting a higher timeframe PSAR to confirm overall trend direction before entering trades.
Can this indicator be used for trade exits?
Yes, the PSAR dot flip is commonly used as an exit signal.
When the dot changes color, it often signals a potential trend shift or momentum slowdown.
Summary
The Parabolic SAR MTF Indicator offers a straightforward way to trade trends using proven PSAR logic combined with multi-timeframe analysis.
Its visual dot system makes it easy to follow momentum and manage trades with discipline.
With flexible timeframe settings and compatibility across all markets, this indicator fits well into both simple and advanced trading approaches.
When paired with solid risk management and confirmation tools, it can support consistent and well-timed trading decisions.
