Tag: parabolic sar

Parabolic SAR and Stochastics MTF Trading System

Parabolic SAR and Stochastics MTF Trading System

Trading Strategies
The Parabolic SAR is a versatile trading indicator which can be effectively used as a trailing stop indicator. It forms a kind of trend following strategy and works best when markets are in a strong trending mode. When combined with the Stochastics oscillator, which basically oscillate between overbought and oversold conditions, thus representing rising and falling momentum, the Parabolic SAR and Stochastics trading system can make for a very unique trading system in itself. This unique approach is further enhanced with a contrarian approach of using multiple time frames. Using the well known approach of using a higher time frame to determine trends, the MTF approach is rather simple. Parabolic SAR and Stochastics Chart Set ups The chart set up is very simple and the Parabolic SAR as ...
What is the Parabolic SAR Indicator

What is the Parabolic SAR Indicator

Trading Indicators
Parabolic SAR, short for Stop and Reverse is a technical indicator developed by J. Welles Wilder. The PSAR indicator is used to primarily determine the direction of price and the points at which price tends to reverse and move in the opposite direction. The Parabolic SAR can be identified by the 'dots' that are drawn on the charts, showing potential price points of reversal and are plotted either above or below the instrument's price. The PSAR trails price by plotting the dots either below the price during an uptrend or above the price during a down trend. These are also known as Rising SAR or Falling SAR. The Parabolic SAR is a free trading indicator that is usually available by default in most trading platforms. PSAR can be used to identify potential price reversals thus giving...