How to use Parabolic SAR

No comment 179 views

How to use Parabolic SAR

One indicator that can help us to determine when a trend will end is Parabolic SAR (Stop And Reversal). This indicator is usually placed into a graph of price movements in the form of dashed lines or points that indicate a potential reversal.
From the picture above it can be seen that Parabolic SAR is depicted with a line of dots below the candlestick uptrend and above the candlestick downtrend.

How to use Parabolic SAR

How to use it is very easy, we just need to know where the dots are. If the Parabolic SAR is described under a candlestick then it is a good time to open a BUY position and if it is above the candlestick then this is the right time to open a SELL position.
How? really easy right.
This is probably the easiest indicator to use and very useful when prices are really trending (downtrend or uptrend). But do not ever use it when consolidating, because it probably will not provide many benefits.

How To Use Parabolic SAR to Exit the Market

If we can enter the market then we also have to get out of the market right! so Parabolic SAR can also be used to provide the right signal to exit the market such as the following chart of price movements of the EUR / USD currency pair.
When EUR / USD starts to climb down at the end of April, this is a great opportunity to get profit (Happy PIP).
And at the beginning of June Parabolic SAR was formed under the candlestick and began to form 3 points and this is the right time to get out of our initial position, the SELL position.
And if we think that prices will continue to run down and ignore this signal, then most likely all profits will be lost 🙁
author
Forex Signal 30 is the best forex system since 2009 and has been used by thousands of traders from around the world to generate profit in forex trading. This system is created by our team of Brilliant Forex Signal Team, this system is made as simple as possible for beginner and professional traders.
No Response

Leave a reply "How to use Parabolic SAR"