Tag: How to use Parabolic SAR

Heikin Ashi Trading Strategy – How to use Heikin Ashi

Post author By Trading Rush
Post date July 10, 2020

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Tag: How to use Parabolic SAR

Heikin Ashi Trading Strategy – How to use Heikin Ashi Strategy or Heiken Ashi Indicator Strategies.

Can Hikin Ashi strategy make you a profitable trader? How to trade it and make more money? What Hikin Ashi Trading strategy is the right one? How to use this Hikin Ashi candle properly without blowing up our accounts? Lets find out.

Hikin Ashi is a very useful candle type that is very popular among new traders. It was made by Munehisa Homma in the 1700s, so it’s really old. Hikin Ashi means “average bar” in Japanese. You can tell by the name, that the Hikin Ashi averages price data, to create candles that appear smoother than the normal Candlesticks. Hikin Ashi candles filter out market noise. Less market noise will help you spot the trend and reversals easily.

On Trading View, this is what the Hikin Ashi candles look like. If we compare it with the normal candlesticks, we will see how smoother and cleaner the price action looks with the Hikin Ashi candles. Candles on the Normal Candlestick chart change direction frequently, but that’s not the case with Hikin-Ashi. That’s because Hikin Ashi averages price data. Hikin Ashi can be very useful for new traders to find the direction and strength of a trend.

And finding the Direction and strength of the trend is very easy with these candles.
If a Hikin Ashi candle has no lower shadow, it indicates a strong uptrend.
Furthermore, If a Hikin Ashi candle is green in color, it indicates an uptrend.
Size of the candles also matter. If the green candle is bigger in size relative to the other candles, it indicates a strong uptrend. And if the green candle is smaller in size, it indicates a weak uptrend.

And if a Hikin Ashi candle has no higher shadow, it indicates a strong downtrend.
Furthermore, If a Hikin Ashi candle is red in color, it indicates a downtrend.
Like I said, Size of the candles also matter. If the red candle is bigger in size, it indicates a strong downtrend. And if the red candle is smaller in size, it indicates a weak downtrend.
Sounds easy right?
What if the candle has shadows above and below at the same time? If a Hikin Ashi has shadows above and below at the same time, it indicates an indecision or range market.
After a series of green Hikin Ashi candles, if you see a candle that has shadows on both sides, it indicates an indecision.
Similarly, After a series of red Hikin Ashi candles, if you see a candle that has shadows on both sides, it indicates an indecision or range market.

Now there are different strategies around Hikin Ashi candles alone. The basic Hikin Ashi strategy, is to buy when the Hikin Ashi gives a strong uptrend indication after a series of red candles, and sell when it gives the strong sell indication after a series of green candles. Any trader with a little bit of experience can tell, that this kind of strategy alone can’t produce profit in the long run. If you buy and sell every entry signals, there is a high chance that you will blow up your account eventually. If you don’t buy and sell at every color change of the normal candlestick, why would you enter trades at every color change of the Hikin Ashi candles.

The best use of Hikin Ashi is at the support and resistance levels. You can also use it with indicators that you know work.

That’s all.

Now you know how to use the Hikin Ashi candles properly, and the reasons why most people use normal candlesticks.

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Parabolic SAR Trading Strategy – Real Win-Rate

Post author By Trading Rush
Post date July 10, 2020

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Tag: How to use Parabolic SAR

Parabolic SAR Trading Strategy – How to use Parabolic SAR Strategy Intraday Indicator Strategies

Does Parabolic sar indicator trading strategy even work? Are online trading guru’s telling you false information? In this video i will back-test 100 times, a very famous trading strategy called the Parabolic sar indicator strategy. Yes you heard it right. testing 100 times takes time, and will most likely prove, if you should risk your hard earned money, using this strategy! This video will be very similar to the CCI and MACD video i made a while ago. If you want to know if those strategies work after testing 100 times? Check those videos out.

On Trading View, this is what the Parabolic sar Indicator looks like. Once you add it on your chart, you will see some dots above and below the candles. If you have never heard about this Parabolic sar indicator, check out my previous video where i explain this indicator in detail.

In my Fractal video, I talked about how Fractal works on a simple U pattern and why it gives a lot of false signals. Just like the Fractal Indicator, Parabolic sar, uses a method called SAR, or “Stop and Reverse”, to find the entry signals. So most of the entry signals given by the Parabolic sar indicator are unreliable.

But In my last video, I showed you a way to filter these false signals by using other indicators like, Alligator and 200 Period Moving Average. Alligator and moving average are both used to find the direction of the trend. Since Parabolic sar gives a lot of false signals on its own, we can use the Moving Average and the Alligator to avoid taking false entries.

The strategy I am going to show, is a combination of the Parabolic sar, the alligator, and the 200 period moving average. If you have never heard about the alligator indicator, check out my previous videos on this channel.

To filter false signals given by the parabolic sar, I have modified the strategy something like this.
When the Parabolic sar gives a buy entry signal, the entry candle has to be above the 200 period moving average. And it has to be over the jaw line. The teeth line should be below the lips line, and above the jaw line. Furthermore, The entry candle, should not touch the jaw line. Also, the parabolic dot should be above the 200 period moving average. In this long setup, you can set your stop loss, just below the parabolic dot.
It sounds confusing, I know. But it works. So lets look at a short setup.

When the parabolic sar gives a sell entry signal, the entry candle has to be below the 200 period moving average. And it has to be below the jaw line. The teeth line should be above the Lips line, and below the jaw line. Furthermore, the entry candle, should not touch the jaw line. Also, the parabolic sar Dot should be below the 200 period moving average. In this short setup, you can set your stop loss, just above the parabolic dot.

I have tested many different strategies 100 times on this channel, and in most of those videos, I have used a fixed risk to reward ratio. I did that to make sure I test those strategies in the latest and same market conditions.

In this video, I am going to test this Parabolic sar indicator 100 times, with a fixed risk to reward ratio, because we want to see, how well it performs as an entry signal generator, and because it will also help us compare the parabolic sar, with other indicators we have tested before.

Like the Video if you liked it.
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don’t forget to ring that notification bell as well,
so you don’t miss any future videos.

If you find this video helpful,
support the Trading Rush Channel on Patreon.
Or maybe Check out these cool Merch i made for the best traders.
It supports the channel as well.

And Don’t forget to check out the official Trading Rush App!
It has some great features that you can use to test your favorite trading strategy.

It is available for absolutely free.
So go check it out, you got nothing to lose.

You can Download it using the link in the description.
Thanks.

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Parabolic SAR Trading Strategy – How to use SAR

Post author By Trading Rush
Post date July 10, 2020

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Tag: How to use Parabolic SAR

Parabolic SAR Trading Strategy – How to use Parabolic SAR Strategy Intraday Indicator Strategies

Can Parabolic sar strategy make you a profitable trader? How to trade it and make more money? What Parabolic sar Trading strategy is the right one? How to use this Parabolic sar indicator properly without blowing up our accounts? Lets find out.

Parabolic sar is an interesting indicator that is very popular among traders. It was made by J. Welles Wilder Jr, and it is used to find the direction of a trend. Furthermore, you can also use it as an entry signal generator, or as a trailing stop loss indicator. That’s right, you can also use it as an exit signal generator. This is one of those rare indicators like Ichimoku Cloud, that tries to show different kinds of information on it’s own.

Parabolic sar indicator is very easy to use and easy to understand. And Like always, I am going to test this Parabolic sar trading strategy 100 times in my next video, to show its real win rate. Maybe Subscribe to see it. After all, you don’t want to risk your hard earned money, on a strategy that doesn’t even work.

On Trading View, this is what the Parabolic sar Indicator looks like. Once you add it on your chart, you will see some dots above and below the candles. On most trading platforms, Parabolic sar will look like this. But on some, these dots can look very different. No matter how different they appear visually, They all will do the same job, as long as you have the default settings.

First of all, lets see the basic Parabolic sar Trading Strategy, then I will show you a way to filter the false signals given by the Parabolic sar indicator.
So, here’s how the Parabolic sar indicator is used by many traders.
When the Parabolic sar dot is below the candles, the market is considered to be in an uptrend. You can enter a long position, when the dot is placed below the candle for the first time.

Similarly, When the Parabolic sar dots are above the candles, the market is considered to be in a downtrend. And you can enter a short position, when the dot is placed above the candle for the first time.

Remember, Parabolic sar is a lagging indicator. Therefore, you should wait for the entry candle to be completed. Then and only then, you should consider taking the trade at the closing price of the candle.

Here’s an example. The dots flipped below the candle. In this long setup, We could have entered a long position, when the dot appeared below the candle for the first time.
Here’s a short example. The dots flipped above the candle. We could have entered a short position, when the dot appeared above the candle for the first time.

Remember, I am going to test this Parabolic sar indicator 100 times in my next video, to show it’s real win rate, and to see if it is a profitable indicator or not. Till then, I don’t recommend taking trades with this indicator alone. Use it with something else, that you know works. Maybe subscribe to see this Parabolic sar indicator tested 100 times in my next video.

That’s All.
Now you know how to use the Parabolic sar indicator properly. I am going to test this indicator 100 times, to show its real win rate. I will do that in the next video. Maybe Subscribe to see it, so you don’t miss it.

Like the Video if you liked it.
Hit that Subscribe button, and

don’t forget to ring that notification bell as well,
so you don’t miss any future videos.

If you find this video helpful,
support the Trading Rush Channel on Patreon.
Or maybe Check out these cool Merch i made for the best traders.
It supports the channel as well.

And Don’t forget to check out the official Trading Rush App!
It has some great features that you can use to test your favorite trading strategy.

It is available for absolutely free.
So go check it out, you got nothing to lose.

You can Download it using the link in the description.
Thanks.