Does anyone out there use Parabolic SARS for trading?

Question

Fujikawa · Accepted Answer

The parabolic SAR indicator is graphically shown on the chart of an asset as a series of dots placed either over or below the price (depending on the asset's momentum). A small dot is placed below the price when the trend of the asset is upward, while a dot is placed above the price when the trend is downward.The calculation of this indicator is rather complex and goes beyond the scope of how it is practically used in trading. Your trading platform may calculate it for you, allowing you to make adjustments as necessary to suit your trading strategy.Many traders will choose to place their trailing stop-loss orders at the SAR value, because a move beyond this will signal a reversal, causing the trader to anticipate a move in the opposite direction. In a sustained trend, the parabolic SAR is usually far enough removed from price to prevent a trader from being stopped out of a position on temporary retracements that occur during a long-term trend, enabling the trader to ride the trend for a long time and capture substantial profits.

Does anyone out there use Parabolic SARS for trading?

1 Answer

1 Answer

Does anyone out there use Parabolic SARS for trading?

1 Answer

1 Answer

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