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Showing posts from April, 2015

Parabolic SAR Technical Indicator Tutorial and Examples

Parabolic SAR technical indicator was developed by Welles Wilder and presented in June 1978 in his book "New Concepts in Technical Trading Systems".
The purpose of the parabolic system - to determine the tolerance within which price movement possible in order to stay in the current trend.
Initially the system was designed as a reverse, that is, at any time, it was assumed that the system is either in ascending or in a downtrend and must be opened in each case either long or short position. Current systems of evidence, in particular, and the original name of its main indicator - SAR (Stop and reverse price - price Stop and Reverse). However, in the future, due to the fact that the market is in a pronounced trend only short periods of time and the constant opening and changing positions is fraught with multiple losses, the system began to recommend to be used in conjunction with other indicators and methodologies.

General description
In the case of an uptrend, at any given time…