Parabolic SAR Technical Analysis & Parabolic SAR Signals

Developed by J. Welles Wilder.

The Parabolic SAR is used to set trailing price stop loss orders. This indicator is usually and generally known as 'SAR' (stop and reversal) & it is used to follow the price action closely.

In an Uptrend, the stop and reversal will trail below the market price
In a downwards trend, the stop and reversal will trail above market price

Parabolic SAR Technical XAU/USD Indicator - No Nonsense Parabolic SAR Strategies

XAU USD Technical Analysis and How to Generate Trading Signals

This indicator provides excellent exit levels.

Exit XAUUSD Signal for Buy trade positions

Traders should close long trade positions when the price falls and drops below the indicator.

If you are trading long i.e. The price is above the stop and reversal, the SAR indicator will move up every day, regardless of direction that price action is going. The movement of technical indicator depends on number of pips that the prices move. When the Parabolic SAR indicator changes the direction then the market trend also changes into down. This generates the exit signal for long trades.

Exit Signal for Sell trade positions

Traders should close short trades when the price rises above the indicator.

If you're short i.e. The price is below the stop and reversal, the SAR will move down every day, regardless of direction that price action is going. The movement of technical indicator depends on number of pips that the prices move. When the Parabolic SAR indicator changes the direction then the market trend also changes into up. This generates the exit signal for the short trade positions.

Place Parabolic SAR Trading Indicator on Chart on Software

Exit Trade Signal for Buy and Sell trades

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Parabolic SAR Technical Analysis & Parabolic SAR Signals

XAU USD Technical Analysis and How to Generate Trading Signals

Exit XAUUSD Signal for Buy trade positions

Exit Signal for Sell trade positions