Review Of Trading Strategy Using Parabolic Sar Indicator In IQ Option

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Review Of Trading Strategy Using Parabolic Sar Indicator In IQ Option

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Have traders ever wondered where the trend will start and where it will end? This is for the purpose of maximizing the return on their investments. It’s all just a vague and unsubstantiated prediction.

Traders have to use manual methods to slowly identify the trend. That is when they do not know the most beneficial trend detection indicator in technical analysis. Finding the beginning and end of a trend is a feature that no indicator has yet performed better than Parabolic Sar.

Together with How to trade, we will go through the review on the trading strategy using the Parabolic Sar indicator which brought in $119 of profits in IQ Option to test its perfection in finding trends.

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Video on reviewing the trading strategy using the Parabolic Sar indicator that quickly made $119 of profits

Review on the trading strategy using the Parabolic Sar indicator

All transactions in IQ Option
All transactions in IQ Option

Conditions: Set up the Parabolic Sar indicator in IQ Option A 5-minute Japanese candlestick chart.

Open a HIGHER order when: Uptrend + the Parabolic Sar indicator is below the Japanese candlestick chart + the price retests the support zone.

Open a LOWER order when: Downtrend + the Parabolic Sar indicator is above the Japanese candlestick chart + the price retests the resistance zone.

1st order: Downtrend + resistance + signal candlestick (Gravestone Doji) = Opened a LOWER order.

1st order on September 08
1st order on September 08

2nd order: Downtrend + the price retested the resistance just passed = Opened a LOWER order.

2nd order in IQ Option on September 08
2nd order in IQ Option on September 08

3rd order: Downtrend + the price tested the resistance with a candlestick (Doji with long upper tail) = Opened a LOWER order.

3rd order on September 08
3rd order on September 08

4th order: Uptrend + the price tested the support with a candlestick (with long lower tail) = Opened a HIGHER order.

The last order on September 08
The last order on September 08

5th order: Uptrend + the price tested the support with a candlestick (with long lower tail) = Opened a HIGHER order.

Review on orders opened in IQ Option on September 09
Review on orders opened in IQ Option on September 09

6th order: Uptrend + the price tested the support with a candlestick = Opened a HIGHER order.

Review on orders opened in IQ Option on September 09
Review on orders opened in IQ Option on September 09

7th order: Uptrend + the price retested the support = Opened a HIGHER order.

Review on orders opened in IQ Option on September 09
Review on orders opened in IQ Option on September 09

You can see the sharp sensitivity of the Parabolic Sar indicator in detecting a trend that is about to develop. It also warns the end of the trend for investors to suspend trading.

Review on the capital management method for Parabolic Sar indicator trading

You are a person who does not like to take risks or they make it difficult for you to accept. Then, you can apply the safe Classic capital management method (balanced investment) that I am currently applying. It doesn’t make your account grow big in a short time but provides steady growth.

Do not ignore capital management as it is an indispensable part of your money-making plan. Let’s start building the capital management method seriously before investing.

The Classic capital management method
The Classic capital management method

Pros

  • Need to choose the amount of investment one time only.
  • The level of risk can be known in advance.
  • It is difficult to go bankrupt when you only lose a certain amount.

Cons

  • A trading strategy with a win rate above 60% is required.

Set out principles during trading

A set of principles will help you navigate the fastest path to success. Sometimes, distraction makes it easy for you to be deceived by the market. It causes you to make inaccurate decisions. But if you have principles, just stick to them. It is like a rope that keeps you away from temptations and helps you make quick and accurate decisions.

Trading principles
Trading principles

The must-have cores in trading principles:

– Do not open many orders consecutively because it easily leads to negative emotions.

– Do not trade when there is news because of unpredictable price movements.

– Stop trading when the target has been met.

– Set the maximum trading limit (such as 5 orders per day).

– Only choose the assets that you understand the best.

Train trading psychology

What have you learned from every time you burned down your account? If you have not drawn any experience, you should give up the path of making money from IQ Option. Every time you stumble, you must learn the lesson. It will keep you from facing those things again. When going through vital situations, if it can’t knock you down, it will strengthen you over time. When you become “immortal”, profits will come. They are seen as gifts that the market encourages and acknowledges your efforts.

Trading psychology
Trading psychology

For experienced traders, they have all the necessary skills and no emotions. Trading, for them, is like a game of probability. Once they accept to open the order, winning and losing does not matter.

At that time, winning themselves is the core of trading. A losing order may make you moan crazily but they may feel normal even after a few dozen losing orders. Because they accept losses.

Understand asset characteristics and create opportunities for yourself

Imagine that the market is a river full of fish (profits) and you are a fisherman. First, you need to determine which fish you want to catch. What are their habits? What kind of bait do they like? When is the right time to cast the line?. If you can answer all of the above questions, you will be someone who can fish to make end meets.

When choosing the wrong object, you may lose baits (capital), time, and effort without getting anything. If you do not know the habits of the fish you are looking for, it can be very difficult for you to catch it. Each one has a different characteristic and you need to understand that.

Wait for the opportunity to appear
Wait for the opportunity to appear

In the financial markets, you also need a major currency pair and a few minor pairs. Of course, you must understand the habits of your “favorite” pair to make daily profits. You must be familiar with the price habits, daily fluctuations, time frames which you should avoid trading so that you can make money from this trillion market.

A trader who makes money from IQ Option knows very well the conditions that give him an advantage. Everything will be decided after the opportunity has arrived. Just one click and we will make money.

One last thing

We have gone through the review of the trading strategy using the Parabolic Sar indicator in IQ Option. With a win rate of over 70%, we have 7 trades in which there are 5 wins and 2 losses.

This deems to be the perfect rate that traders want. But to get such reasonable entry points, it takes patience and concentration. This is really a strategy that is worth testing on a Demo account before putting it on your monetization list.

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