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Parabolic SAR Stock Indices Technical Analysis and Parabolic SAR Stock Indices Signals

Developed by J. Welles Wilder.


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


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


Parabolic SAR Technical Stock Indices Indicator



Stock Indices Technical Analysis and Generating Stock Indices Signals


This indices technical indicator provides excellent exit points.


Exit Signal for Buy trades

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


If you are trading long i.e. The stock index price is above the stop and reversal, the SAR will move up every day, regardless of the direction that stock index price action is moving. The movement of the indicator depends on the number of pips that stock indices prices move. When the SAR changes the direction then the stock indices market stock indices 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 stock index price rises above the indicator.


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

Parabolic SAR Technical Stock Index Indicator Exit Stock Indices Signal

Exit Signal for Buy and Sell trades