Parabolic SAR XAUUSD Technical Analysis and Parabolic SAR XAUUSD Signals

Developed by J. Welles Wilder.

The Parabolic SAR is used to set trailing gold price stops. This xauusd indicator is usually referred to as the "SAR" (stop-and-reversal) and it is used to follow gold price action closely.

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

XAUUSD Technical Analysis and Generating XAUUSD Signals

This xauusd indicator provides excellent exit points.

Exit Signal for Buy trades

Traders should close long positions when the gold price falls below the indicator.

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

Exit Signal for Sell trades

Traders should close short positions when the gold price rises above the indicator.

If you are trading short i.e. The gold price is below the stop and reversal, the SAR will move down every day, regardless of the direction that gold price action is moving. The movement of the indicator depends on the number of pips that xauusd prices move. When the SAR changes the direction then the xauusd market xauusd trend also changes to up. This generates the exit signal for short trades.

Exit Signal for Buy and Sell trades