About the Parabolic Signals Alert Indicator
The Parabolic Signals Alert Metatrader 4 forex indicator is built around the classic Parabolic SAR tool and focuses on identifying trend direction and reversals.
Its main purpose is to notify traders when the Parabolic SAR flips position relative to price.
When Parabolic SAR dots appear below the candlesticks, the indicator defines the market as bullish.
When the dots move above the candlesticks, bearish conditions are indicated.
These changes are translated into clear trade prompts displayed directly on the chart.
The indicator also sends on-screen and email alerts, ensuring traders do not miss potential opportunities.
It is commonly used for short-term trading, where quick trend shifts play a major role in trade execution.
Free Download
Download the “ParabolicAlert.mq4” MT4 indicator
Key Features
- Automatic detection of Parabolic SAR trend reversals.
- On-chart BUY and SELL trade prompts.
- On-screen and email alert notifications.
- Visual display of bullish and bearish trends.
- Optional MT4 account information overlay.
Indicator Chart
The chart shows the Parabolic Signals Alert indicator applied to a price chart.
Parabolic SAR dots shift above or below the price, while trade prompts appear when the trend direction changes.
This allows traders to follow short-term trend movements directly from the chart.
Guide to Trade with Parabolic Signals Alert
Buy Rules
- Wait for the indicator to display an “open BUY order” message.
- Confirm that Parabolic SAR dots are positioned below the candlesticks.
- Enter a buy trade after the alert appears.
- Stay in the trade while dots remain below the price.
Sell Rules
- Wait for the indicator to display an “open SELL order” message.
- Confirm that Parabolic SAR dots are positioned above the candlesticks.
- Enter a sell trade after the alert appears.
- Remain in the trade while dots stay above the price.
Stop Loss
- For buy trades, place the stop below the most recent Parabolic SAR dot.
- For sell trades, place the stop above the most recent Parabolic SAR dot.
- Trail the stop as new SAR dots form.
- Exit if price closes decisively beyond the SAR structure.
Take Profit
- Target recent swing highs or lows.
- Allow the trade to run while Parabolic SAR maintains direction.
- Close the trade when an opposite signal appears.
MT4 Parabolic Signals Alert + FX Prime Trend Forex Strategy
This strategy combines the Parabolic Signals Alert MT4 Forex Indicator with the FX Prime Trend MT4 Indicator.
The Parabolic Signals Alert provides clear buy and sell signals.
When the PSAR dots appear below the candlestick, it generates a buy signal; when dots appear above, it generates a sell signal.
The FX Prime Trend indicator shows trend direction with a green line indicating a bullish trend and a red line indicating a bearish trend.
By combining these indicators, trades are only taken when the signal aligns with the overall trend, improving trade accuracy.
This strategy works best on M15 and M30 charts and is suitable for day traders looking for clear trend-based intraday entries.
Buy Entry Rules
- FX Prime Trend line must be green, indicating a bullish trend.
- Parabolic Signals Alert must show PSAR dots below the candlestick (buy signal).
- Enter long at the open of the next candle after the buy signal appears while the trend line remains green.
- Place a stop loss below the most recent swing low or support area.
- Set take profit at twice the stop loss distance, or exit if the trend line turns red or a sell signal occurs.
Sell Entry Rules
- FX Prime Trend line must be red, indicating a bearish trend.
- Parabolic Signals Alert must show PSAR dots above the candlestick (sell signal).
- Enter short at the open of the next candle after the sell signal appears while the trend line remains red.
- Place a stop loss above the most recent swing high or resistance area.
- Set take profit at twice the stop loss distance, or exit if the trend line turns green or a buy signal appears.
Advantages
- Combines trend-following and precise entry signals for higher probability trades.
- PSAR provides clear visual signals while FX Prime Trend confirms trend direction.
- It can be applied to multiple currency pairs for intraday trading opportunities.
- Simple and easy-to-follow rules suitable for both beginners and experienced traders.
Drawbacks
- PSAR may give false signals during sideways or choppy markets.
- The trend line may lag during sudden reversals, causing delayed entries or missed opportunities.
- Smaller timeframes may experience noise and frequent stop-outs.
Case Study 1
On EURJPY M15 during the London session, the FX Prime Trend line was green, indicating a bullish trend.
PSAR dots appeared below the candlestick, giving a buy signal.
The trader entered long at the next candle with a stop loss of 8 pips below the recent swing low and a take profit of 16 pips above.
Within 20 minutes, the price moved upward and reached the take profit target.
The trend line stayed green, and no sell signal appeared, confirming a successful bullish intraday trade.
Case Study 2
On AUDUSD M30 during the New York session, the FX Prime Trend line turned red, indicating a bearish trend.
PSAR dots appeared above the candlestick, giving a sell signal.
The trader entered short at the next candle with a stop loss 12 pips above the recent swing high and a take profit 24 pips below.
Price dropped steadily over 35 minutes, hitting the take profit.
The trend line remained red, and no buy signal appeared, validating the bearish trend and signal.
Strategy Tips
- Use this strategy on currency pairs with good liquidity to reduce slippage and improve trade execution.
- Trade during periods of high volatility for stronger price movements and more reliable PSAR signals.
- Check higher timeframes for overall trend direction to confirm intraday entries and avoid countertrend trades.
- Combine with simple support and resistance levels to filter entries and exits more effectively.
- Limit the number of trades per session to focus on high-quality setups rather than chasing every signal.
- Monitor the distance between PSAR dots and price.
- Avoid entries when dots are too close or too far from the price, which may indicate weak momentum.
- Always follow your risk management rules and avoid overleveraging, especially on volatile pairs.
Download Now
Download the “ParabolicAlert.mq4” Metatrader 4 indicator
FAQ
Is this indicator suitable for long-term trading?
It performs best in short-term market movements where trend changes occur more frequently.
Can alerts be customized?
Yes. On-screen and email alerts can be enabled or disabled in the indicator settings.
Can it be combined with other indicators?
Yes. Many traders combine it with moving averages or price action tools for added confirmation.
Summary
The Parabolic Signals Alert MT4 indicator simplifies trend-following by turning Parabolic SAR reversals into clear trade prompts and alerts.
It helps traders react quickly to changing market conditions without constant chart monitoring.
With its visual signals, alert system, and focus on short-term trends, the indicator is a practical choice for traders who rely on momentum-driven price movements.
