Parabolic SAR indicator

Parabolic SAR indicator

Parabolic SAR

The advantages of using the Parabolic SAR is how it looks in the form of a point and thus allows a person to read the state of the market. moreover, the greater the distance between the point of SAR with the highest or lowest price of the bar, it indicates the strong trend up / down what happened.

Parabolic SAR when prices are in a rising trend, the SAR points will be below the price movement. Conversely when the market is in a down trend the SAR points will be on top of the price movement. trend up or down to look more defined and no longer give rise to misinterpretation.

Parabolic SAR including indicators of the type of slow to accommodate changes in prices. By That is why it is advisable to add oscillator type indicator (RSI, Stochastic) which tend to more quickly so they can offset each other.

Parabolic SAR is more effectively used in a trending market conditions (active price movements). being in a situation characterized by dense sideways distance between the point with the highest SAR / cancel existing price, this indicator can not provide signals. Sideways situation worse characterized by switching their mobile SAR points above and below the bar making it difficult for Kita in the open position.