Trailing Stop Loss Order MT4 Indicator

Developed by J. Welles Wilder & is used to set trailing price stops. This Trailing Stop Loss Order Indicator was originally created to analyze trending Markets. It is drawn as a chart overlay indicator, that is on the price chart itself.

This is a very accurate indicator for providing exit points and thus it is used to set trailing stops & is usually referred to as the 'SAR' (stop-and-reversal) - Trailing Stop Loss Order MT4 Indicator.

This Trailing Stop Loss Order MT4 Indicator is drawn above or below the price - it's plotted as a series of dots. The length of move of SAR Indicator is determined by the scale of price movement.

In an upwards trend the parabolic SAR Indicator will be below the price. As long as the up trend continues then SAR Indicator will continue to be below the price - Trailing Stop Loss Order Indicator. When trading price move down & the parabolic SAR goes above gold price then the trend reverses to bearish.

This trailing stop loss technical indicator uses a parabolic calculation to plot the sequence of dots, This means that if the price stops heading up with the same acceleration, the parabolic SAR Indicator shall continue with same acceleration thus at some level the price will hit the indicator if it slows down too much.

Interpretation

This Trailing Stop Loss Order MT4 Indicator provides excellent exit points. You should close long positions when the price falls below SAR & close short positions when the price rises above it.

If you are long, the Parabolic SAR Indicator - Trailing Stop Loss Order MT4 Indicator will move up every day, regardless of direction the price is moving. The amount this technical indicator moves up depends on the amount that prices move.

The same technical analysis will also apply to a downwards trend, the parabolic SAR Indicator - Trailing Stop Loss Order MT4 Indicator will be above the price & it should remain above price until the bearish down trend reverses.

The chart below shows example of the Parabolic SAR in an up trend market, You can check how it trailed below the price (Bullish Market) until when it was hit & the trend reversed.