All of the 5 options I traded have one thing in common. That is to open HIGHER options when the price touches the support zone in an uptrend.

There is no LOWER option to share with you guys because I prioritize my main job (Office worker). My free time to observe the chart is usually from 17:00 to 23:30 in the day. Unfortunately on Jan 13 2020, the currency pairs I observe follow the uptrend, which leads to no LOWER options.

When the market trend is up, I have no other choice but to follow it and buy HIGHER options. Because they have a high potential winning rate. So about LOWER options, I will share in another article in the near future.

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Trading strategy with Parabolic Sar indicator combined with Support

Below are the conditions for entering options when using the Parabolic Sar indicator trading strategy.

Trend

What every investor knows that they only trade when the market has clearly shown the trend. So I will only guide trading with an upward or downward trend. I don’t encourage you to trade when the market is sideways.

Uptrend: Parabolic Sar indicator is moving up from the bottom. The next peaks are higher than the previous ones. The same goes for the bottoms.

Downtrend: Parabolic Sar indicator is falling down from the top. The next bottoms are lower than the previous ones. The tops are just like the bottoms.

Resistance and support

When the trend is up, the best entry point is when the price adjusts to the support zone which has just formed combining with the Parabolic Sar indicator moving up from the bottom.

When the trend is down, the entry point that has the highest winning rate is at the resistance level the price has just passed combining with the Parabolic Sar indicator is moving down.

Signal candlestick

The signal is a candlestick with a long tail that touches the resistance or support zone, which shows that the price has been denied by the market. This candlestick is usually Doji or Pinbar.

Steps to prepare before trading with Parabolic Sar indicator and Support

(1) Currency pair: AUD/USD, EUR/USD.

(2) Japanese candlestick chart. The candle time period is 5 minutes

(3) The expiration time from 1 to 5 minutes is not encouraged.

(4) The reasonable expiration time is 15 minutes or more.

How to trade

HIGHER = Uptrend + the price tests the support level + Parabolic Sar indicator is moving up from the bottom.

LOWER = downtrend + the price tests the resistance + Parabolic Sar indicator is moving down from the top.

Classic capital management strategy: $20 per option, up to 5 options a day.

Profit: 35.6%.

Entry points on January 13, 2020 with Parabolic Sar indicator strategy combining with Support

Signal entry in IQ Option

Option 1: Uptrend + the price tests the support level + Doji candlestick = Open a HIGHER option.

Option 2: Uptrend + the price tests the support level + Pinbar candlestick = Open a HIGHER option.

Option 4: Uptrend + the price tests the support level + Pinbar candlestick = Enter a HIGHER option.

Option 3: Uptrend + the price tests the support level + = Enter a HIGHER option.

Option 5: Uptrend + the price tests the support level + Doji candlestick = Open a HIGHER option.

These indicators give us an objective view of the market. To be confident in each entry point, we should combine the types of indicators that support each other to form the strategy that suits yourself best.

Do not use a single indicator because sometimes it does not provide the exact data that you want to find out. The market always has the ability to create very large fluctuations that make the indicators not work as expected. At that time, combining indicators will show us the signal to stop trading.

Summary

I share this article because I want to learn more from you. To win in this market, you have to learn new knowledge about it every day. I was lucky to have a good starting point so I could go faster and write good entry points that I had been through. From there, I want to learn together to improve our knowledge so that we can make a profit in this fierce financial market.

If you are lacking one of the two things that are patience and discipline, I advise you to practice more until you have better control of yourself. After that, it’s time to think about achieving the desired profit by trading in IQ Option.

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The post Review IQ Option trading strategy: Parabolic with support and resistance levels appeared first on IQ Trading Pro.

I also review some entry points that I enter with this strategy in IQ Option.

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IQ Option trading strategy: Parabolic Sar indicator with Support and Resistance

Basic set up before trading

Select trading assets: AUD/USD, USD/JPY, EUR/USD.

Japanese 5-minutes candlestick chart.

The expiration time is 15 minutes or longer.

Parabolic Sar is an indicator that clearly confirms the direction and timing of the market trend as well as potential reversal points.

Below picture is an example of Parabolic Sar indicator in an uptrend.

Below picture is an example of Parabolic Sar indicator in a downtrend.

IQ Option trading formula

To keep things simple, we only enter a trade when the trend is clearly confirmed. In an uptrend, we only open HIGHER options. In a downtrend, we find reasonable LOWER entry points.

With this IQ Option strategy, Parabolic Sar indicator plays a role in identifying the trend. Support and Resistance levels act as an entry signal.

HIGHER = Parabolic Sar indicator in uptrend + Support.

Explain: When the price is in an uptrend, it will increase continuously and break through the resistance => The old resistance will become a new support zone.

In those increasing movements, there will be corrections that decrease and test this new support. This is a signal for you to open HIGHER options.

LOWER = Parabolic Sar indicator in downtrend + Resistance.

How to manage capital appropriately

The safest way to protect your account in a high-risk market is to set an account limit on profit and loss. A method that is carefully calculated to protect your money so that the amount of bet does not go beyond the limit of the account is Fibonacci capital management.

Fibonacci method is quite simple. When you lose, forward 1. When you win, backward 1.

Details are as follows:

You bet $1 – lose -> $2 – lose -> $3 – lose -> $5 – lose -> $8 – win -> $5 – win -> $3 – win -> $2 – win -> $1.

If you win from $8, start the stop loss cycle. If you lose in the stop loss cycle, continue to use the formula: win – forward 1, lose – backward 1.

Details are as follows:

You bet $1 – lose -> $2 – lose -> $3 – lose -> $5 – lose -> $8 – win -> $5 – lose -> $8 – win -> $5 – win -> $3 – lose -> $5 – win -> $3 – win -> $2 – win -> $1.

The total capital for the above 8-option cycle is $87.

Some rules to remember when trading options in IQ Option

Setting a certain limit on profit and loss. When reaching the limit, you need to stop trading and log out of the account.

Only open an option when the price has determined the trend with certainty. When the transaction is made, we simply wait for the market to indicate whether our decision is right or wrong.

Review IQ Option entry points

Option 1: Price breaks Support and goes down. Parabolic Sars are above the candlesticks => Downtrend – Only wait to open a LOWER option => The old support now becomes a new resistance.

The price tests the Resistance zone => Open a LOWER option with the 15-minute expiration time.

Result => Win.

Option 2: Price keeps rising and breaks the resistance level. Parabolic Sar indicator is below the candlesticks => Uptrend – Waiting to open a HIGHER option. The old resistance now becomes a new support.

The price temporarily falls to a new support level => Open a HIGHER option with the 25-minute expiration time.

Result => Win

Summary

This is an IQ Option strategy that focuses on Trend and Signal. Use Parabolic Sar to determine trends. Support and Resistance are the entry signal.

The only secret in financial trading lies in only 2 words. Discipline and Patience. Test this strategy with your Demo account in IQ Option. Good luck!

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The post A simple way to make money in IQ Option: Parabolic Sar with Support and Resistance appeared first on IQ Trading Pro.

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What is Parabolic Sar indicator?

Parabolic Sar is a technical indicator used to determine the direction of a price, as well as a warning when the price changes. It is also known as “Stop and reverse system”.

How does the Parabolic Sar work?

On the chart, Parabolic Sar appears as a strip of dots placed above or below candlesticks. When the dots below the price are considered as the bullish signal. On the contrary, the dots above the price show that the price is in a downtrend.

=> When the dots change their positions from the price, they show that the price direction may be about to change.

In (1) and (3), Parabolic is above the candlesticks => The market is falling => Parabolic Sar buy signals => Open a LOWER option.

In (2), Parabolic is below the candlesticks => The market is rising => Parabolic Sar buy signals => Open a HIGHER option.

How to set up Parabolic Sar indicator in IQ Option

To set up Parabolic Sar indicator: (1) Click the indicator box => (2) Trend tab => (3) Select Parabolic Sar.

Build IQ Option trading strategy with Parabolic Sar indicator

Strategy 1: Only use Parabolic Sar

If you use this trading technique, you only need to use the candlestick chart and Parabolic indicator. All you have to do is to focus on the Parabolic changing point.

HIGHER = Parabolic moves from above to below the candlesticks.

LOWER = Parabolic moves from below to above the candlesticks.

Strategy 2: Parabolic Sar indicator combines with SMA

Parabolic Sar can identify the correct trend in a short period of time. Besides, SMA is an effective long-term price prediction. This will give a perfect IQ Option trading strategy.

Requirements: Japanese 5-minute candlestick chart + Parabolic Sar indicator + SMA30 indicator. The expiration time is 15 minutes or more.

Trading guide:

HIGHER = Morning Star + Parabolic reversal candlestick pattern is below the candle + Price crossed the SMA30 line from below.

Explanation: The reversal signal is Morning Star candlestick pattern + Parabolic is below the candlesticks => Uptrend. The entry point is right after when the candlestick that cuts SMA30.

LOWER = Evening Star reversal candlestick pattern + Parabolic is below the candlesticks + The price moves up and cuts SMA30.

Strategy 3: Parabolic Sar indicator works with candlestick patterns

In this way, Parabolic indicator will play a role in identifying the trend. The signal to trade will be candlestick patterns that continue the trend. If you don’t know all of the reversal candlestick patterns, please read here. All about reversal candlestick patterns in IQ Option.

Requirements: Japanese 5-minute candlestick chart + Parabolic Sar indicator. The expiration time is from 5 to 15 minutes.

Trading guide:

HIGHER = Bullish Parabolic Sar indicator + bullish candlestick pattern (Tweezer Bottom, Three White Soldiers, Pin Bar, etc).

LOWER = Bearish Parabolic Sar indicator + bearish candlestick pattern (Three black crows, Pin Bar, etc).

You can practice the above trading strategies in IQ Option through a demo account. Good luck!

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The post Parabolic Sar indicator – How to use and trade it in IQ Option appeared first on IQ Trading Pro.