The Parabolic Sar Color With Alert Metatrader 4 forex indicator is a widespread technical tool that is mostly used by traders to define the probable short-term momentum of a given forex pair.
Unlike the standard Parabolic SAR indicator that possesses a single color scheme, this variant has a dual color representation of the signal dots that are seen above/below the candlesticks.
Just like the original Parabolic SAR, the Parabolic Sar Color With Alert indicator can easily be applied to any trading strategy or system.
Thereby offering traders clues on possible levels that are suitable for stop orders.
The graphical representation of the Parabolic Sar Color With Alert indicator as series of color altering dots that is placed above/below the candlesticks, makes it quite easy to interpret.
The EUR/USD H1 chart below displays the Parabolic Sar Color With Alert Metatrader 4 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the Parabolic Sar Color With Alert Metatrader 4 forex indicator displays yellow series of dots that are aligned below price bars.
Sell Signal: Go short when the Parabolic Sar Color With Alert Metatrader 4 forex indicator displays magenta series of dots that are positioned above price bars.
Exit buy trade: Close all buy orders if while a bullish trend is running, the Parabolic Sar Color With Alert indicator displays a magenta dot.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the Parabolic Sar Color With Alert indicator pops up a yellow dot.
Tips: The indicator performs best when the market is in a steady trend.
When the market is ranging, the Parabolic Sar Color With Alert indicator tends to whipsaw back and forth, creating false positives.
Adding an indicator like the Bollinger Bands will be a big plus.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern indicator
Customization options: Variable (AlertsEnabled, Step, Maximum, Precision), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the parabolic-sar-color-with-alert.ex4 indicator into the MQL4 indicators folder of the Metatrader 4 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL4 > Indicators (paste here)