Parabolic Trading System.
This particular technique has been around a long time and is still widely used by many analysts because of its adaptability to most markets.
The parabolic time/price system was first introduced by J. Welles Wilder Jr. in his book 'New Concepts In Technical Trading Systems'. It is very often referred to as the SAR system meaning stop and reverse. This means when a stop is hit the system reverses so it is permanently in the market.
The actual point at which the system is reversed is calculated on a daily basis (or whatever time period you are looking at) and the stop moved to create a new reverse point. The SAR point never backs up.
In other words if you are long the market the SAR point will increase every day. The same is true for short positions. This is the time part of the system.
The other important part of the system is the speed at which the SAR point moves. If the market is moving fast the SAR point will move slowly at first and then increase as the market moves higher, this is the price part of the system. The rate at which the system increases is called the acceleration factor.
It is beyond this lesson to give the exact calculation of the acceleration factor and it is not really necessary to know the formula as most charting services now incorporate the system in their indicator range.
Example of what SAR looks like.
So far so good. The system is simple to trade and is very visual so it's easy to know when you should be short or long. If the SAR point (dots) are above the market you should be short and if they are below the market you should be long.
Here's the problem! It doesn't perform very well in the markets I have tested it on nor do I know any traders who trade it as a stand-alone system. Maybe in the markets of the past it would have worked well but not so now. The problem is there is just too much whipsaw.
Now you may be asking if there is too much whipsaw why mention the system at all? Good question and here are two reasons I find a good use for the system.
The system can be very effective if a filter of some sort is used. In the example below of the eur/jpy I have used a MACD as a filter. If we were long the market then only long signals would be taken and the short signals ignored as long as the filter (MACD in this case) remains long. If a short signal is triggered but the filter still remains long you could close the position and wait for the next long signal. The reverse is true for short positions. You could use any oscillator you feel comfortable with or even trend lines.
I am sure you can find many other uses for the SAR system and its well worth playing around with the parameters to see if it can be added to your trading arsenal.
Information, charts or examples contained in this lesson are for illustration and educational purposes only. It should not be considered as advice or a recommendation to buy or sell any security or financial instrument. We do not and cannot offer investment advice. For further information please read our disclaimer.

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I want to use the secret weapon on it but as I see it can only have one ececution ready for a trade. If making a multile choice I have to use different entries and that is not good in newstimes.
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Excellent charting interface and massive selection of standard and customized indicators. The autotrading and 1-click trading features are nice as well. Software used to be buggy with numerous disconnects during the day - however the lastest versions are quite stable.
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Since 1999 Visual Trading Systems’ VT Spot™ system has been the Spot FX & CFD trading platform of choice for nearly ONE MILLION traders around the globe. VT Spot provides traders with hyper-realtime pricing, advanced technical analysis, and simple to use automated strategies. Our years of experience, perseverance, and history of innovation is unmatched in the retail forex industry.
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Breakthrough formula Forex trading system.
You may already tell from the name, what this Forex trading strategy represents, and that is the breakthrough occurring in trends. It is a very simple to understand system that can be used on all timeframes and for all markets from the FX market to stocks and commodities. Let’s get into it.
This trading system uses several technical indicators that inform the trader on when to enter and exit a trade position. Fortunately, this trading system is very visual and easy to understand. We shall need 5 technical indicators, all of them labelled in the image below. All these indicators can be downloaded from the link at the bottom of the page, and they work with MetaTrader 4, no other Forex trading platforms. The best Forex brokers always offer MT4 since it is the most popular platform for traders.
The COG indicator is represented by 5 lines on the main trading window on the real-time Forex charts. It is a modified version of moving averages, and they sort of act like the envelopes indicator (See uncommon technical indicators for more information). Also just like moving averages, the slope helps to tell the direction of the markets.
When the COG indicator lines are sloping upwards, you should know the market is bullish and start looking for buying signals. On the other hand, if the slope is downward, then look for selling signals. In addition to the slope, the colour of the COG indicator lines will also shift depending on market direction. This offers a visual aid to quickly identify market direction.
As you can tell from the name, this is a modified version of the MACD indicator, and it is found in the indicator window. Just like the MACD, values shift around the 0 mark, showing bullish signals when above this mark and vice versa. However, the QFFMACD has a few modifications. First, it is coloured, unlike the typical MACD. When the colour is green, the markets are bullish, and you should look for buying signals and vice versa.
Furthermore, the colour changes in intensity depending on the momentum in the markets. In a bullish market, a bright red hue shows that there is a lot of momentum to the upside, and it would occur during a strong uptrend. As the upward momentum dies down, the colour turns to a dark green, which means that even though the momentum is diminished, the markets are still bullish.
These modifications of the QFFMACD make the indicator very useful because swing traders can hold on to long-term trades as long as the indicator retains the same colour all through. As for intraday traders, a change in hue may signal the end of a short-term trend. (Best technical indicators and how to use them)
In addition to the colours, there is also a line going through the bars, and it too is important. When the line is trending within the bars, it indicates a lack of definitive momentum. Notice how all the major trends start when the line moves away from the bars? This line should be used to determine if there is volatility in the markets that might lead to trends, or if the market is ranging.
These are the green and red dots appearing either at the peaks or troughs of a range. If a green dot appears, this is a signal to buy, while a red dot signals a sell order. When markets are trading within a range, SHISIGNALS are extremely powerful, like in the image below:
In this image, the markets were trading in a range, and you can see how the SHISIGNALS would have helped a trader make at least 6 very profitable trades. Even when markets are not within a range, SHISIGNALS indicator can still help a trader determine when a possible trend reversal is about to occur. For example, if you were holding a long position and saw a red dot, that might tell you to close that position as the trend may be reversing.
These two signals work together to create a wave of green and red bars, and they are the most critical in this trading system. The first, RedHAS, looks very similar to the actual candlesticks, and the second, RedHASext is an extension of the first. Together, they tell how much momentum is in the markets and when a trend is about to end. The colour is the first signal they provide – green for bullish and red for bearish market sentiment. Furthermore, the length of these bars shows momentum – when the bars are long, then there is strong momentum either to the downside or upside depending on colour. As the bars start to get shorter, this shows dwindling momentum, and the possible end of a trend.
Using the breakthrough trading system.
Now that you know all the signals involved, how do we make use of them. The first step is to identify when to enter a trade. Essentially, you’re looking for a convergence of signals provided by all the technical indicators described above. Let’s see how this works from an actual chart:
This image starts at point A, when a red SHISIGNAL appears. It is a signal to sell, and this is confirmed when the RedHAS and RedHASext turn red and the QFFMACD dips below the 0 mark. At this point, with all indicators signaling a sell, that is the time to open the trade with a short position.
At point B, a green SHISIGNAL appears, and a short-term trader or scalper could exit the trade. A long-term trader may need to wait for a confirmation signal, though, which would happen when the RedHAS and RedHASext turned green. As you can see, these indicators did not turn green, and even though the markets seemed bullish, the downtrend continued at point C reaching D. (How to make money through scalping)
At point D, another green SHISIGNAL appears, signaling a buying opportunity, but there is still no confirmation. That comes later when the line of the QFFMACD crosses out of the red bars. Typically, the red bars ought to indicate bearish sentiment, but the line tells us when the shift occurs even before momentum is gained. The COG indicators are also in a steep upward slope, all indicating a strong buying signal. If a trader had used this trading strategy, they would have got a very good profit as the uptrend gained momentum up to point E.
Here, COG became flat, showing that momentum had ended, traders had closed their positions and buying power had run out. That would have been a good position to exit the trade. From point E to F, there wasn’t any clear signal, but now the uptrend has resumed. Since this is a live chart, what do you suppose will happen next?
A number of technical indicators have been used in this trading strategy, but the most significant is the QFFMACD, which as mentioned earlier, is a modified version of the MACD. If you learn how to use the MACD indicator, then this trading strategy would be a lot more effective. Watch this video as an expert explains the basics of the MACD indicator:
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