Parabolic strategy for Forex
The strategy we share with you in this article is based on an indicator developed by Mr. J. Welles Wilder. This is a very beginner trader strategy that any novice trader can use with the help of a parabolic indicator without the need for prior knowledge. Stay on track with us.
Like any indicator used in any trading strategy, Parabolic also has a long delay in price movements. For this reason, most of the market’s strenuous strategies can be profitable by seasoning a little action-price action.
How to deal with Parabolic?
How to use parabolic in Forex is very different with other markets, such as the stock market, the gold and gold bullion market, the oil and petrochemical market, the digital currency market, and so on. does not have. The general idea is as follows:
When the indicator points are above the curtain stick, we are entering a downtrend.
When the dots point down the candlestick, we have entered a bullish trend.
On the other hand, these points move up and down instead of being displayed in a different window under the chart. This is a very golden thing that can be very handy in managing transactions.
As you can see in the chart below, the “stop, reverse” feature in this indicator is very clear and understandable. It may not be worth mentioning that, in markets with strong trends, the points are divergent, but in the turbulent markets these points come together. Many Forex traders use this feature to identify market conditions and enter only strong markets.
Parabolic Indicator Settings
We are always interested in “out of the box thinking” and we tend to play as indicator and expert settings so that we can not get out of this time!
A setting called acceleration is the main determinant of the distance and the placement of points. But unfortunately, there is no optimized setting. So, we strongly recommend that you do not get too busy with them, which will result in nothing but frustration.
Best Deal Enter
You are in the default mode and according to what is recommended on all sites and books, you can pay by buying when the price goes below and selling when the top spot goes.
But the cushion we want to give you is a bit corrected and will stop many of the trades. That way:
By plotting a trend line as shown below, until the uptrend, get only the deals offered by this indicator and refuse to sell.
By drawing a trend line, get sales deals and avoid purchases until the downside. Be sure to set your trend line to EMA and restrict it to 100.Obviously, this strategy does not have the ability to make such profits, and it has never been seen by anyone with that huge wealth. But what’s definitely needed is a start for everything. This strategy can be a very good start for Forex traders to practice capital management and improved entry and exit along with getting to know the Forex market and how it trades.