SAR MACD Indicator

SAR MACD Indicator

SAR MACD Indicator For MT4 combines the classic SAR and MACD MetaTrader indicators and provides buy and sell forex trading signals.

The SAR MACD indicator for MT4 combines the two classic MetaTrader indicators. SAR – Stop and Reverse and MACD – Moving Average Convergence and Divergence indicators combine to provide forex trading signals. Generally, traders calculate the SAR based on the price. But, this indicator calculates the SAR based on MACD values.

The indicator is simple to understand and is suitable for new and advanced forex traders. It works on all intraday price charts as well as the daily, weekly and monthly price charts. However, intraday traders and short term forex traders may find this indicator interesting and rewarding.

SAR MACD Indicator For MT4 Trading Signals

The indicator plots lime dotted SAR lines on the MACD indicator in a separate indicator window. It calculates the SAR values based on the MACD indicator values. The SAR provides bullish or bearish trading signals based on its interaction with the MACD histogram. Generally, SAR reverses the trading signal if price hits it. In this indicator instead of price the MACD histogram bars hit the SAR for a signal change.

The trading strategy is to enter and exit the markets based on the SAR signals. If the SAR starts to appear below the histogram bars traders should enter the market with a buy trade. A stop loss should be placed below the previous swing low.

Similarly, once the SAR dots start to appear above the histogram bars forex traders should open sell positions. The best strategy to book profits is to hold the positions until an opposite trading signal appears.

Conclusion
In summary, the SAR MACD indicator for MT4 combination and the application of SAR on MACD may not work well with all forex traders. However, traders using technical analysis on an indicator may find it interesting.