Parabolic SAR Expert Advisor Setup - Setting Up Parabolic SAR Expert Advisor
Parabolic SAR Expert Advisor Setup - A trader can come up with an Parabolic SAR Expert Advisor based on the Parabolic SAR indicator explained below.
Parabolic SAR Expert Advisor rules can be combined with other Forex indicators to come up with other EA Bots that trade using rules based on two or more indicators combined to form a system.
Parabolic SAR Analysis & Parabolic SAR Signals
Developed by J. Welles Wilder.
The Parabolic SAR is used to set trailing price stops. This indicator is usually referred to as the 'SAR' (stop and reversal) & it is used to follow price action closely.
- In an Uptrend, the stop & reversal will trail below the market price
- In a downtrend, the stop and reversal will trail above the market price
Parabolic SAR Expert Advisor Setup
Forex Analysis & How to Generate Trading Signals
This indicator provides excellent exit points.
Exit Trade Signal for Buy trades
Traders should close long positions when price falls below the indicator.
If you are trading long i.e. The price is above the stop & reversal, the SAR indicator will move up every day, regardless of direction that price action is moving. The movement of the indicator depends on the number of pips that the prices move. When the SAR indicator changes the direction then the market trend also changes to down. This generates the exit signal for long trades.
Exit Forex Trade Signal for Sell trade transactions
Traders should close short positions when the price rises above the indicator.
If you're trading 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 moving. The movement of the indicator depends on the number of pips that the prices move. When the SAR indicator changes the direction then the market trend also changes to up. This generates the exit signal for short trades.
Exit Signal for Buy & Sell trades - Parabolic SAR Expert Advisor Setup
