Parabolic SAR and Stochastic Oscillator Strategy – forex trading strategy description

It is quite simple strategy and two indicators are used in this strategy.
• Parabolic SAR and
• Stochastic oscillator.

A great mob is practicing this strategy while they are trading during United States market session or London market.
Time Frame:
It works on hourly time frames. Because of this it becomes less effective as users need to analyze higher time frames of Parabolic SAR. You need to collect four hour or daily data in the form of charts.
Markets Suitable:
You need to be very careful about market while using this strategy. This strategy is effective for London and U.S markets only. Don’t use this strategy for Asian markets.
Long Trade:
You must keep in mind that for any time frame
1. SAR dots must lie below the daily time candlesticks.
2. SAR dots must lie below the four hour time frame candlesticks
3. SAR dots must lie below the hourly time frame candlesticks.
Take Profit:
You must keep in mind that the take profit must be lower than 20 pips every time.
Stop Loss:
Always use the SAR dot that lies below the respected candlestick as stop loss. Then move that stop loss according to the movement of prices.
Short Trade:
You must keep in mind that for any time frame
1. SAR dots must lie above the daily time candlesticks.
2. SAR dots must lie above the four hour time frame candlesticks
3. SAR dots must lie above the hourly time frame candlesticks.