PSAR + AO + MACD

Hello everyone. I am new to forex and just started trading it a couple of week ago. I came across some really cool systems and tried to take something that I like from each one.
The first system I checked out was using PSAR indicator and the Awesome Osc.
Then I added a MACD to my chart with standart settings to give me a little bit of a better sense of a direction.
I also use two MA's, 34 EMA and 20 SMA.
The set ups are the following:
1. MACD has to cross and then it has to be followed by a candle with the PSAR appearing in the same direction the MACD has just crossed to to go.
2. The price has to be on one of the MA's of above (for a long) or below it (for a short).
3. I just go market when the PSAR indicator appears and it's in an agreement with AO indicator.
Here are couple examples.
Please let me know what you think about this system or if you would like to add or improve something. Also another thing that I am yet to figure out is my profit target. Normaly i just go with a 40 pips profit target but as you can see from the charts there is more to be made from these set ups.

Hey Arubin ,

First of all I cant even say that this should be at the Trading Systems part.
A Trading system is an entry , exit , money management . Cant see any of those here . Still gratz for trying :} gl and have fun with trading.

Yes imagine there are 22 build in indicators on MT4 each as about 2-3 different setting. How much combinations does that make? 100 Trillion?
Hell let's start a thread for every single one of them. There must be one that makes money. We just have to try them all...

appreciate the input guys. that's why i started this thread to see if someone can figure out the exit on this strategy. For entry i just go market. May be it's crazy but it proved itself working for the last couple of days

Come on guys! He's trying. Why not be helpful? I can see a couple of ways out depending on the length of time you want to hold. If you enter on the basis of PSAR, then you could get out when the Psar reverses. Another method for a shorter time frame would be to trail a stop at the low of the previous bar or perhaps just use a trailing stop, but I tend to think that the best time to exit is when the conditions that led to the trade no longer apply strongly or have reversed and invalidated the trade or when obvious support or resistance has been broken. Another option would be to use a take profit at the first level of obvious support or resistance. In my trading I use a 7 period .7 dev bollinger band to define trend. I enter when price closes outside the band (if a few other conditions are satisfied), and exit when price closes on the other side or when price hits a fib based take profit. The take profit is how I prefer to get out.

My friend you've got a great system going for you , stick with it and get to know your indicators for what they said happened - that way you'll know what will happen - momentum and enertia(trend) - your MM(exit & entry) should be based on when the opposite conditions apply - the indicators you are using is great momentum & enertia indicators - with these guys you can hit trades constantly - ranging & trending whether 1pip profit or 50 profit

I don't know if it's just me or what, but when I add parabolic to my chart it just stays flatlined. It's been like that for the last 5 hours. Then I just now changed from 5M to 15M and back to 5M, now the parabolic looks like it should. Following the flow of price.

Guess I'm not sure what good the indicator is if it doesn't even refresh itself.

thx,
todd

thank you taxgeek and Shanexx for the ideas! I will test them right now as I am trading!

hey todd, are you using MT 4 or Oanda? I have the indicator on both of those systems and it works fine. try to recreate the charts, hope it helps!

here is trade I took this morning at 9.00 a.m. GMT +2
bought market at 1.36779

before going up the trade was going up and down for a little bit but I decided to stay in it because I had no sign of that the trade would reverse on me anytime soon as the PSAR indicators kept on appering on the bottom of each candle.
It finally took of at 9.20.
At 9.30 I decided to put a trailing stop on the bottom on the previous candle and that's precisely where I got stopped out at 1.36899.
Made 12 pips on this trade!
This was just to test the trailing stop. On my next trade I will try to stay until the PSAR indicator doesn't appear or it if appears in the opposite direction.

took a short at 9.50 a.m. the trade was up about 5 pips and I placed my stop on the top of the 9.50 candle where i thought it would be a good place for it. Got stopped out with a 7.1 pips loss

I'm using MT4 and it's working fine on my home desktop. Guess it was just something to do with my laptop. Who knows.

thx,
todd

here is my 3rd trade for today.
bought market at 11.25 at 1.3680 put my stop loss at the low of the 11.20 candle at 1.36596 and my profit target at 20 pips because it seemed to me that the market doesn't wanna move more that 20-30 pips on a run today in either direction and just let it run.
made 20 pips.
so total for today is +24.9 pips on 5 min EUR/USD

Hi Arubin,
Could you please post/attach the MACD indicator showing red and green histogram?

Thanks/Harry

Hey Harry. I am using Oanda for charts and it just comes on it with a histogram like that. But I was able to find one like that on this post
http://www.forexfactory.com/showthread.php?t=69409 for MT 4 and I aslo attached a copy here

Save yourself a year or two and start reading this thread today.

http://www.forexfactory.com/showthread.php?t=39514

Not saying it's the end all to end all but it will get you thinking in a reasonable direction.

might read the 1st post here as well.

http://www.forexfactory.com/showthread.php?t=3156

might give you insight as to where you are currently heading.

good luck.

I was able to catch a couple of great setups today on the GBP/USD for some 50+ pips.
For my stop loss - I put the stop on high of the candle that precedes the entry candle. Worked on 2 of my trades today.
I try to find some other pairs where this system would work. So far the best one is GBP/USD

Took a trade on GBP/USD this morning. placed my stop on the previous candle's high.

I exited this trade when the PSAR indicator stopped appearing.
Took the next trade.