Combining MACD, EMA and Parabolic SAR – Trading Strategy

Basic Trading Strategy - Combining MACD, EMA, and PSAR
Basic Trading Strategy - Combining MACD, EMA, and PSAR

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The combination of MACDEMAParabolic PSAR is very popular to find reversal points. This tactic gives a very high probability of accuracy on orders longer than 30 minutes.

The strategy on long-term

People said long orders have a higher chance of winning than short orders. Even so, it doesn’t mean that long orders will always yield higher returns.

It is said that long positions have a higher probability of winning than short orders. Even so, I am not saying that long positions will always yield higher returns than short positions. That is why you need to master basic strategies.

This article will guide you on how to use the trading combination strategy of MACDEMAParabolic PSAR through the interface of Olymp Trade broker which has provided tools.

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How to do Long-term trading with MACD, EMA and Parabolic SAR strategy

Setting up on Olymp Trade

At the Olymp Trade trading interface, you need to set up those indicators. Note that it is best to use the candlestick indicator and the duration is 5 minutes per candle.

Tutorial setting up indicators on Olymp Trade for basic trading strategy
Tutorial setting up indicators on Olymp Trade for basic trading strategy

Default settings of indicators are:

  • Parabolic: 0.02
  • EMA: 10
  • MACD: 12, 26, 9

Signals

MACD, EMA, PSAR combination in trading strategy
MACD, EMA, PSAR combination in trading strategy

Signal to place Up / Buy orders

When the price is in a downtrend, it will be about to increase again if there are the following signals:

  • The green MACD 12, 26 cuts the red MACD 9 from the bottom and continues to go up.
  • The yellow EMA10 indicator moves up after the new green candle. But the EMA10 should always be below the candlestick chart.
  • The Parabolic SAR indicator line has been above the candlestick chart until now, starting to move below the candlestick chart.

Signal to place Down / Sell positions

When the uptrend is about to end to initiate the downtrend, these signals will appear:

  • The green MACD 12.26 line cuts the red MACD 9 line from above and continues to move downwards.
  • The yellow EMA10 moves below the new red candle then starts to move above the candlestick chart.
  • The PSAR indicator line appeared below the last candle of the trend and started to appear above.

Conclusion

The combination of these three indicators produces relatively accurate entry times for long orders. The MACD, EMA, and PSAR indicator at the same time all showed signs of a reversal time. That is why you should enter commands that receive the above signals.

This strategy is a combination of all 3 indicators and it only works when there are signals of all 3 indicators at the same time. So wait for the right time and place orders, patience is the most important factor in using indicators and tactics.

Indeed, this indicator is only effective for long orders, especially 5-minute candles with 30 minutes long order is always the best choice for traders. However, you need to experience everything by yourself. So feel their effectiveness from the demo account before playing for real. After realizing the possibilities of this strategy, let’s trade large sums of money.

If you have any questions about MACD, EMA, or PSAR indicators, feel free to leave a comment below.

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Combining MACD, EMA and Parabolic SAR – Trading Strategy
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