PSAR 4 Time-Frames Strategy
This strategy is ideal for Trending Markets but can also be used effectively on Rangebound ones.
1. You want to see a 1st PSAR DOT to the highest Time-Frame. ( Up to 3 Fresh DOTS are considered valid)
2. You want to see at least TRIPLE Number of DOTS to the same direction on the next smaller Time-Frame.
3. You want to see at least TRIPLE Number of DOTS to the same direction on next smaller Time-Frame.
On the 4th Time-Frame you FREEZE and WAIT for a Correction with as many opposite PSAR DOTS as possible.
4. After the Correction on 4th Time-Frame is over, Enter when you see RSI crossing 50-level line confirming PSAR’s 1st DOT. Place your SL a few pips below 1st DOT if you BUY or a few pips above 1st DOT if you SELL and trail it following PSAR’s DOTS and keeping the pips distance fixed. EXIT when RSI crosses 50-level line to the opposite direction.
If the price doesn’t reverse and you see it continuing to the Correction’s direction, switch to the next smaller Time-Frame, WAIT to see a line of PSAR DOTS to the opposite direction of the one you want to join and Enter from there after the 1st PSAR DOT to the direction you want to follow is confirmed by RSI crossover with 50-level line.