Fibo Parabolic PRT

This indicator is a fusion of the Parabolic SAR and Fibonacci indicators. Fibo is drawn on the last wave, at the peaks the indicator displays prices for convenience.

Parabolic SAR helps to define the market trend and generates trends following trade signals.  On the other hand, Fibonacci plots the price retracement levels so that traders can determine a better and safer place to enter the market.

Scalping with Parabolic SAR and Fibonacci Overview.

For this strategy, in addition to our indicator, you need to install an additional Parabolic SAR from those already installed on your MT4 trading platform on the chart and configure it according to the following settings:

• Parabolic SAR1 (Step: 0.02 & Maximum: 0.2): Used to define short-term trends of the market. Price holding above its level means the trend is bullish and an opposite scenario represents the bearish trend of the market.
• Parabolic SAR2 (Step: 0.005 & Maximum: 0.05): This one works as a filter of the trend signals plotted by the Parabolic SAR1. You’ll only enter long when P.SAR1 moves above the P.SAR2 level. Conversely, P.SAR2 moves above the P.SAR1 level, which means it is time to go for short entries.
• Fibonacci: This indicator is used as a scale to measure the retracement level of the market compared to its recent high-low range. The rule is, that you’ll only enter a trade when the price hits its 50% retracement level of the current range.

Scalping with Parabolic SAR and Fibonacci Buy Parameters

• Parabolic SAR1 moves above Parabolic SAR2
• Price retraces up to 50% level of its current range determined by the Fibonacci
• Buy triggers when the above conditions are met
• Set stop loss below the Parabolic SAR2 level
• Take profit whenever the price hits the Parabolic SAR1 

Scalping with Parabolic SAR and Fibonacci Sell Parameters

• Parabolic SAR2 moves above Parabolic SAR1
• Price retraces up to 50% level of its current range determined by the Fibonacci
• Sell triggers when the above conditions are met
• Set stop loss above the Parabolic SAR2 level
• Take profit whenever the price hits the Parabolic SAR1