Parabolic SAR Scalping Systems: 3 Forex Strategies Compared

By Be4TradingForex Editorial Team
Published · 3 min readStrategies

The Parabolic SAR places dots above or below price and flips when the trend changes, which makes it popular for scalping entries and trailing stops. These three systems combine it with the CCI, Fibonacci levels or a long-term EMA and coloured MACD as a trend filter. Our Parabolic SAR guide explains the indicator and its settings in detail.

These systems were collected from public trading forums and are explained here for education. They have not been independently backtested; results depend on spreads, execution and discipline.

The Systems at a Glance

System Timeframe Main indicators
Scalping with Parabolic SAR and CCI 1-minute and 5-minute Parabolic SAR (0.02, 0.2), CCI (45), 50 SMA (1-minute chart)
Parabolic SAR Trend Scalper M5 Parabolic SAR (0.01, 0.01), EMA 100, MACD colored (64, 128, 9)
Scalping with Parabolic SAR and Fibonacci M1 Parabolic SAR (0.02, 0.2) fast trigger, Parabolic SAR (0.005, 0.05) slow filter, Fibonacci retracement/extension

Scalping with Parabolic SAR and CCI

Trend-momentum scalping: Parabolic SAR sets trend direction and trailing stop, CCI 45 confirms momentum, SMA filters bias. Best in London and London-New York overlap.

Timeframe 1-minute and 5-minute
Pairs EUR/USD, AUD/USD, GBP/USD
Indicators Parabolic SAR (0.02, 0.2), CCI (45), 50 SMA (1-minute chart), 21 SMA (5-minute chart)

Buy rules:

  1. Parabolic SAR dots flip below price, positioned above the SMA.
  2. CCI (45) crosses above +100.
  3. Price trades above the SMA.

Sell rules:

  1. Parabolic SAR dots flip above price, positioned below the SMA.
  2. CCI (45) crosses below -100.
  3. Price trades below the SMA.

Stop-loss: Opposite side of the SMA; then trail behind the most recent Parabolic SAR dot.

Exit: Targets: EUR/USD 7-12 pips, AUD/USD 5-8 pips, GBP/USD 7-15 pips; trail stop with latest SAR dot.

Parabolic SAR Trend Scalper

M5 scalping system taking trades only when 100 EMA trend, Parabolic SAR direction and MACD zero-line side all agree, during London and London/New York overlap with spread under 2.5 pips.

Timeframe M5
Pairs EUR/USD, GBP/USD, AUD/USD
Indicators Parabolic SAR (0.01, 0.01), EMA 100, MACD colored (64, 128, 9)

Buy rules:

  1. Price trading above the 100 EMA
  2. Parabolic SAR dot prints below price
  3. MACD histogram above zero
  4. Enter buy at open of next candle

Sell rules:

  1. Price trading below the 100 EMA
  2. Parabolic SAR dot prints above price
  3. MACD histogram below zero
  4. Enter sell at open of next candle

Stop-loss: 3 pips beyond the most recent SAR dot (below for longs, above for shorts).

Exit: Take profit 7-12 pips (fixed 8-10 in choppy markets), or trail stop with each new SAR dot.

Scalping with Parabolic SAR and Fibonacci

One-minute EUR/USD scalp during 04:00-06:00 EST: fast SAR break in slow SAR direction, buy/sell limit at 50% Fibonacci pullback, target 161.8% extension.

Timeframe M1
Pairs EUR/USD
Indicators Parabolic SAR (0.02, 0.2) fast trigger, Parabolic SAR (0.005, 0.05) slow filter, Fibonacci retracement/extension

Buy rules:

  1. Trade only 04:00-06:00 EST.
  2. Slow SAR (0.005, 0.05) is below price.
  3. Price breaks up through fast SAR (0.02, 0.2).
  4. Draw Fibonacci from nearest swing low to high of breakout bar.
  5. Place buy limit at 50% retracement.

Sell rules:

  1. Trade only 04:00-06:00 EST.
  2. Slow SAR (0.005, 0.05) is above price.
  3. Price breaks down through fast SAR (0.02, 0.2).
  4. Draw Fibonacci from nearest swing high to low of breakout bar.
  5. Place sell limit at 50% retracement.

Stop-loss: Last significant swing low minus 2 pips for longs; last swing high plus 2 pips for shorts.

Exit: Take profit at 161.8% Fibonacci extension; move stop to break-even after price moves about one risk distance.

How to Test These Systems Safely

  1. Pick one or two systems whose rules you can follow without interpretation.
  2. Set them up on a demo account with the broker’s real spreads; several systems use custom indicators that must be installed in MQL4/Indicators (see our free MT4 indicators for common tools).
  3. Check that arrow or signal indicators do not repaint: scroll back and compare past signals with what you saw live.
  4. Record at least 50-100 trades, including costs, before deciding whether a system has an edge.
  5. Risk 0.5-1% per trade and stop for the day after a set loss.

Frequently Asked Questions

What Parabolic SAR settings do scalpers use?

The default step 0.02 and maximum 0.2 is common. Slower settings such as 0.01 or 0.005 reduce flips and act as a trend filter.

Why does the Parabolic SAR lose money in ranges?

It flips back and forth in sideways markets, producing a string of small losses. A trend filter such as a 100 EMA or the CCI helps avoid those periods.

Can the Parabolic SAR be used as a stop-loss?

Yes, many traders trail the stop at the SAR dot, which tightens automatically as the trend continues.

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