Description
Parabolic SAR indicator training
This indicator was created by a person named Welles Wilder. This indicator has been identified as trend-following indicators. It also identifies the return points of the share price. The chart shows the dots at the top and bottom of the price. Note the following image, which is a sample of Kasapa’s share in the daily time frame:
As you can see, the Parabolic Indicator is a dotted line at the top and bottom of the price chart.
Identify trends through the Parabolic Indicator
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Trend detection by this indicator is in two ways:
- When the share trend is bullish, the dotted line is at the bottom of the price. This is where the buy signal comes in. Consider the following example:
2. When the stock trend is down, the dotted line is at the top of the price and this is considered as a signal to sell the stock. Consider the following example:
- One of the important features of this indicator is that it shows that there are many investment opportunities for the trader at any point in time.
- Identify return and stop points in the share process
- When the new share trend is not confirmed and (Fail), using this indicator, the trend reversal can be detected.
- Identify where the loss limit order should be placed. Note the following figure regarding trend change, using the Parabolic indicator:
How to add Parabolic SAR in useful trader software
First in the logarithmic diagram, by selecting the INSERT option and then INDICATOR, the Parabolic indicator is specified.
Indicator settings in the useful trader software
In most cases, the settings are a bit of an indicator.
Simultaneous use of Parabolic and ADX indicators
Note the following diagram:
As we can see, when the ADX is in a positive position, the Parabolic indicator is in an uptrend, and vice versa.
Conclusions in Parabolic SAR indicator training
It is recommended to use this indicator to identify price return points. Another important application of this indicator is that it easily examines the possibility of identifying entry and exit points in the share. And as we know, this indicator should be used along with other indicators.
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