A simple way with Parabolic sar

Parabolic SAR is one of the default MT4 indicators that was originally used to find out the trend will end (stop) and reverse (reverse) direction. But, over time, its use parabolic SAR can be used for entry, either enter the market, buy or sell.

Here is a picture of the parabolic sar indicator on MT4:

If we look at the chart then this shaped parabolic sar indicator dots or dot located above or below the candlestick. If the dots or dot is above the candlestick then can be interpreted as bearish signals. Whereas if the dots or dot the candlestick then can be interpreted as bullish signals. However, not all the dot point or we can use the guidelines as a signal for the entry point (buy or sell). Therefore, we must be able to read the trend. Parabolic sar indicator because it can only be used when the trending only. If market circumstances sideways then these indicators cannot be used because it would just generate a false signal (false signals).

Usually, this parabolic sar indicator already gives 0.02 parameter by default on as in the picture below:

Then, how do I open positions by using the parabolic sar indicator?

A suitable time frame for trading strategies trading parabolic SAR is to use a graph 4 H or daily. We may also use the time frame 1 h. If using TF 30 minutes down can cause a lot of false signals appear.

Consider the following image:

ENTRY BUY

• Remember trading principles i.e. buy at a time when the trend goes up
• Rising Trend characterized by the presence of low are rising. If there are low rises more then appear two parabolic sar dots under the candlestick then it is a good time to buy. 
• So we'd the better entry point to the third dot of parabolic sar

ENTRY SELL

• Remember trading principles i.e. sell at a time when the trend is down
• When the trend is down that is characterized by high more humble then appear two dot above the candlestick then that's when it's most appropriate to do a sell entry. 
• So we sell at the point to the third dot of parabolic sar.

The downside of parabolic SAR indicator

1. The signal that is formed is indeed quite slow
2. When market conditions are sideways or consolidation will lead to too many dot that appears so false signal appeared. This is what often outwit traders.

In order for us not to be fooled by the appearance of a dot on the chart, then we can combine it with other indicators, for example, stochastic, MACD, CCI, MFI, and others.

We can try it out first on the demo account trading that we are proficient in using these indicators and effective in its use on the real account.

Good luck.