10. What is a Parabolic SAR Indicator? trading timing

 

 

◆ Before explaining the parabolic SAR

 

 

The Parabolic SAR is an indicator that gives traders a hint on the direction of the asset class. It also presents a point of entry and exit.

 

 

 

 

◆ What is Parabolic SAR?

 

1. J. Welles Wilder Jr. This is an indicator developed by you that informs traders of the direction of the trend and the timing of a potential reverse trend.

 

2. This technical indicator suggests the timing of entry and liquidation by using the trading stop and reverse trend technique "SAR" ( STOP-AND-REVERSE).

 

3. Parabolic SAR indicators are displayed as multiple dots on the chart or above/below the price depending on the direction of the asset class.

 

 

4. Dots are below the price and can be interpreted as an uptrend and above the price as a downtrend.

 

 

 

 

◆ Indicators that can be used with Parabolic SAR

 

1. When actually trading, it is not enough to trade with just one indicator.

 

2. Stochastic and ADX are indicators that can be used together.

 

3. For example, a Parabolic SAR sell signal is more accurate when it is below the long-term moving average price. Conversely, when the price trades above the long-term moving average price and a buy signal occurs, its accuracy also increases.

 

 

4. The Parabolic SAR indicator is suitable for traders who frequently engage in short-term trend-following trading.

 

 

 

 

◆ It also serves as an auxiliary role for other indicators.