In this post I will review the Simple SAR Indicator from the team over at trading strategy guides. They have been in the industry for many years and I have reviewed other forex software from the team including forex systems and forex robots.
The Simple SAR Indicator is a technical indicator that has been programmed to run in the MetaTrader and Ninja Trader platforms. MetaTrader can be download for free from most online forex brokers. If you are looking for a broker, please feel free to see my best forex brokers page.
Simple SAR Indicator Trading System
You can load the Simple SAR Indicator on to your charts in the MT4 platform and it can give potential trading signals with alerts. It combines 2 indicators in one in order to help improve the signals generated.
As the name rightly eludes to, this particular trading indicator is based on the parabolic SAR. The parabolic SAR is a technical indicator used to try and determine the price direction of an asset, as well as draw attention to when the price direction is changing. Sometimes known as the “stop and reversal system,” the parabolic SAR was developed by J. Welles Wilder Jr., creator of another popular trading indicator, the relative strength index (RSI).
You do not need to take every signal from the indicator and can choose your own money management strategy. I would verify each signal with my own market analysis including fundamentals, price action and sentiment data.
I would probably only take trades where I see the potential for a risk to reward ratio of at least 1:3 where a winning trade would be 3 times greater than a losing trade. There is nothing more frustrating than 1 losing trade wiping out multiple winners.
It can be used on any currency pair and time frame. Thus, it is possible to use the indicator for various trading styles including scalping, day trading and swing trading.
I would personally use technical indicators on the long-term time frames as I find that they can have less noise than the shorter-term time frames.
Furthermore, I would usually look for trading setups on the major currency pairs such as the EURUSD and GBPUSD as they usually have some of the tightest spreads with plenty of liquidity for rapid trade execution speeds.
The developers provide 2 ideas for strategies which are the super cross entry strategy and reverse power move strategy. You can trade based on these or implement the indicator within your own trading strategy.
The Simple SAR Indicator can be set to send you alerts when it finds a possible trading opportunity. These can be sent via SMS, email and platform pop-ups. This makes it useful to monitor multiple currency pairs and time frames without needing to start at charts all day long.
The developer has left 20+ external settings available to adjust in the Simple SAR Indicator so that you can experiment with it further and customise it to your preferred trading style.
They have also added a bonus feature to the Simple SAR Indicator which uses triangle patterns to try and anticipate areas where moving averages will cross.
Simple SAR Indicator Trading Summary
Overall, this can be used as a standalone trading system or in parallel with your own trading system. It is flexible and user friendly. It will require the user to implement their own money management and trading discipline.
The official Simple SAR Indicator website has multiple examples where you can familiarise yourself with some of the ways it can be used. You may also use a demo trading account to put in practice some of the ideas. There is also a money back guarantee should it not be for you.