Parabolic Indicator

Dictionary Says

Definition of 'Parabolic Indicator'

A technical analysis strategy that uses a trailing stop and reverse method called "SAR," or stop-and-reversal, to determine good exit and entry points.

Parabolic Indicator
 

Also known as Parabolic Stop And Reverse (PSAR)
Investopedia Says

Investopedia explains 'Parabolic Indicator'

This method was developed by J. Wells Wilder. Basically, if the stock is trading below the parabolic SAR (PSAR) you should sell. If the stock price is above the SAR then you should buy (or stay long).

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Articles Of Interest

  1. Introduction To The Parabolic SAR

    Take a closer look at this indicator, which during a trending period, is a very useful and accurate tool.
  2. Trailing-Stop Techniques

    The important decision to exit a position must be based on more than emotion if you want to be a disciplined trader.
  3. Candle Sheds More Light Than The MACD

    Read the case against this well-established indicator.
  4. How is the Parabolic SAR used in trading?

  5. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  6. Triple Screen Trading System - Part 4

    How can a trader use the Elder-Ray oscillator as the second screen of this system? Find out here.
  7. Triple Screen Trading System - Part 3

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  8. Triple Screen Trading System - Part 2

    Market tide is the basis for making trading decisions in this three-part system.
  9. Triple Screen Trading System - Part 1

    Learn to take advantage of both trend-following and oscillator techniques to analyze your trading decisions.
  10. Triangles: A Short Study In Continuation Patterns

    Learn how to read these formations of horizontal trading patterns.

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