Binomo is a well-known and reliable platform for online trading, and hundreds of positive feedbacks from real users confirm this. Here, traders can choose among many reliable strategies, and today we want to familiarize you with ones that use the Parabolic SAR indicator and Evening Star candlestick pattern. These techniques offer a high level of safety and accuracy.
Let’s look at them in detail.
Types of strategies with SAR indicator
A SAR indicator, including a parabolic SAR indicator, works perfectly in trending markets. Therefore, it is essential to identify strong trends before using SAR signals. For this purpose, it is recommended to use the indicator with other technical tools. The best strategies apply the combination of the SAR and other indicators, in particular, the Evening Star candlestick pattern.
With the method that uses both the Parabolic SAR indicator and Evening Star candlestick pattern, the trader should open a down trade. To use this technique, you need to reveal the price change that starts to fall after rising. Also, there will be a change of Parabolic compared to the price, and the Evening Star candlestick pattern will appear. In addition, in most cases, there will be a price reversal. All these factors together make a reliable basis to open trades.
Capital management method
This strategy implies the traditional capital management method, which means that the user opens trades with the same amount of funds. The trades should have a long term, so you can be sure they will not be affected by relatively insignificant fluctuations or price manipulations.
How to prepare for trading?
There are several steps you should take to use the SAR indicator and Evening Star candlestick pattern:
- Choose appropriate asset pairs, such as EUR/USD, USD/CAD, and USD/JPY.
- Analyze a Japanese candlestick chart with a timeframe of 5 minutes.
- Use the Parabolic SAR indicator with a candlestick chart to evaluate the market.
- Monitor bullish trends, and if you see the Evening Star, you need to act.
Let’s assume that you trade with EUR/USD pair, and the Evening Star candlestick pattern appeared at the end of an uptrend. If there was a reversal of Parabolic SAR on the third candle, you could open a 20-minute trade.
Or let’s assume that you trade with the USD/CAD assets pair and observe the price rise. Also, the Evening Star appears, which is the reversal signal so that the Parabolic SAR will appear later. In this case, it is recommended to trade down with a 20 minutes timeframe.
To use the Parabolic SAR indicator and Evening Star candlestick pattern effectively, you should keep in mind the following points:
- If the third candlestick of the Evening Star is much longer than the first candlestick, do not open a trade.
- The price will probably reverse if the Parabolic SAR reverses, creating the Evening Star.
- Therefore, do not open a trade if the indicator has not reversed.
If you remember these notes, you will use the indicator and pattern most efficiently.
Always remember that online trading involves the risk of losing capital, so you must act responsibly. We recommend opening the Bnomo demo account to test any trading strategies before investing real funds.