Parabolic Sar

In Indicators

The stop and inversion indicator (Stop And Reverse), used together with other indicators, could be very useful, especially to identify the reversal points of the trend. However it is not very suitable for short-term investments. It can be compared to a moving average with a great acceleration and consists in a series of points placed above or below the price. If the indicator it is below the price we will have a bullish trend, on the contrary, it is located above the price, we will will have a bearish phase.

parabolic sar

The rule says that if the price go over the indicator, we could face the beginning of an horizontalization of the trend or a reversal point. As mentioned the Parabolic SAR is not a very suitable indicator for very short-term transactions and, therefore, we do not recommend it, unless you have intention to work with more than 60 minutes expiration time frame investments.

We suggest to use indicators with our partner Trading View and take a look also at the Candlestick Patterns guide.

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