Using Information From Parabolic SAR

Parabolic SAR (PSAR) is a technical indicator created by Welles Wilder for use in market trending. This indicator was first introduced by Wilder in his book entitled "New Concept In Technical Trading Systems". The term Stop and Reverse is a basic function of the PSAR indicator as a marker for stopping and reversing Market direction. Since it was introduced in 1978, Parabolic SAR came to be known as a trend indicator indicator. In fact, traders who follow Trend Following strategies usually use Parabolic SAR in analytical techniques to determine the reversal of the trend direction. Its use is almost similar to the Moving Average plus indicator already installed by default in MetaTrader to be a special point. The difference is that this PSAR indicator uses points that are located above or below the candle, so that the trend conditions can be read clearly.

Consider the example of using the PSAR indicator on the following GBP / USD chart:

Based on the graph above, it can be concluded that the candles that are above the PSAR points indicate a strengthening condition. Conversely, if the candle's position is below the PSAR points, it can be said that the price is weakening and there is a downtrend. In addition, the strength of the trend pointed to by the PSAR indicator can also be read through the distance between the Parabolic SAR point with the lowest price or the highest candlestick price. The further the Parabolic SAR point is from the lowest or highest point of the candlestick, the stronger the trend is.
using Parabolic SAR can help you read trend conditions based on the position of the PSAR point against the candle. If the candle is above the PSAR, the condition shows Uptrend, so it can be used for Buy entries. Although the application is as simple as that, but keep in mind that this PSAR indicator is lagging alias slow, just like other trend indicators. For this reason, an additional confirmator needs to be used so that the trading signals generated by Parabolic SAR are more valid.

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Paying attention to the point given by the parabolic sar of each candle is very helpful in trading, it is very simple and very helpful.

Parabolic sar provides trend information clearly, a change in trend occurs if the price breaks the PS indicator line.

parabolic SAR is one indicator that I put on my trading system and I combine it with the Bolingerband indicator, both of them collaborate into strategies that I believe are quite good, accurate and really help me find an entry point.

At first glance, the indicator looks very good, but we also have to prepare for the risk that later this indicator will be repainted

using a parabolic indicator is simple because actually this indicator only requires understanding that is not enough, we only observe the points that are the reference for us to open positions and you can also set the period according to what you want

as good traders we must be able to appreciate our wealth very well because by appreciating our losses we are the same as hoping that everything we are going to do will happen so we must be able to hold back what we want

using information from the parabolic Sar indicator is good too because this type of indicator is an indicator that can be used to detect the overall trend direction and can do any position by observing the dots or dots that occur between the candlesticks