Info For Trading

Parabolic SAR (SAR stands for Stop And Reverse) an indicator which was originally used to know when the trend will stop and reverse direction, and corresponding indicators over time is used to be used as entry point. This indicator was developed by Welles Wilder named an analyst premises initial concept that time is an enemy, and unless security can still make more profit then it should be liquidated.

This indicator works well in uptrend price movement but the trend where there is no price movement (flat trend or sideway) then it becomes less useful.

SAR is shown as a series of dots placed / located above or below the price. From the position above / below those used by traders to generate transaction signals depending on where the position of the points.

How to use Parabolic SAR:
If these points are under the graph indicating signal to buy, and vice versa if the points are on the graph indicating signal to sell.

Open positions on the up trend:

Up trend is usually characterized by higher lows and Parabolic SAR dots which had previously been on the charts it will be down close to the graph, as the next graph appears the new dots appear under the graph. Look at the picture below.

Open positions on the down trend:

Down trend is usually characterized by a high position in the lower and Parabolic SAR indicator if there is chart like this then dots appear on the graph as shown in the picture.

Suggestion:

Open position as shown 2 or 3 point Parabolic SAR on opposite sides, as the first point that comes out is usually to reverse trend has not been so strong, that it was a false signal.

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