Are you looking for an effective automated trading system that can enhance your trading strategy? Look no further than the SAR MACD EA designed for MetaTrader 4. This Expert Advisor (EA) operates based on a 15-minute bar or candle chart, utilizing the MACD indicator to provide early signals of market direction.
The primary focus of this trading system is the Parabolic SAR, which serves as an initial signal for potential buy or sell opportunities. The EA analyzes the closing price of the current bar or candle in conjunction with the Simple Moving Average (SMA) to determine trading signals. Specifically, if the third candle back was below the SMA, and the previous candle closed above the SMA while the SAR flipped below the price, this constitutes a buy signal. If the MACD shows a bullish trend but the previous candle's close is still below the SMA, the EA will wait for a window of five candles for the price to close above the SMA.
Below are examples illustrating this trading strategy:
The concept is that as soon as a candle closes below the SMA, the third candle should be above the SMA. During this timeframe, the SAR should also flip above the price, indicating a potential bearish move confirmed by the MACD either at the same time or a few candles earlier.
This image illustrates a buy signal:
