The Parabolic Signals Alert forex indicator alerts you when Parabolic SAR reverses its trend direction.
The basics of the Parabolic SAR indicator are easy to understand:
- A buy trend occurs when the Parabolic SAR dots are positioned below the candlesticks.
- A sell trend occurs when the Parabolic SAR dots are positioned above the candlesticks.
The Parabolic Signals Alert forex indicator shows you the current trend (bullish or bearish) and the suggested trade position (open BUY order or open SELL order)
You will get notified with an on-screen pop-up alert and an email alert.
Some traders mix the Parabolic SAR indicator with other technical indicators or with price action methods.
Parabolic SAR works well for short-term buy and sell trends. So, scalpers and day traders can benefit from this indicator.
Furthermore, the Parabolic Signals Alert indicator displays the following Metatrader 4 account info on the main trading chart (can be turned ON and OFF).
- Broker name
- Account number
- Trade Mode (demo or real)
- Leverage
- Balance
- Equity
Free Download
Download the “ParabolicAlert.mq4” MT4 indicator
Indicator Chart (USD/CHF M1)
The USD/CHF 1-Minute chart below displays the Parabolic Signals Alert Metatrader 4 indicator in action.
Basic Trading Signals
Signals from the Parabolic Signals Alert MT4 indicator are easy to interpret and goes as follows:
Buy Signal: Open buy position when the Parabolic Signals Alert MT4 indicator displays “open BUY order” on the chart. Confirm the possible buy trade with other technical indicators or with price action methods. Place a stop-loss below the green PSAR signal dots.
Sell Signal: Open sell position when the Parabolic Signals Alert MT4 indicator displays “open SELL order” on the chart. Confirm the possible sell trade with other technical indicators or with price action methods. Place a stop-loss above the green PSAR signal dots.
Trade Exit: Use your own method of trade exit.
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
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (step, maximum, display alerts, email alert, display trade info) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend
