TRADING STRATEGY USING PARABOLIC SAR

Many traders who to this day are still looking for what are the most appropriate and most profitable indicators, but what traders really need are all in the metatrader platform itself. All indicators in the metatrader are the best indicator indicators created by experts to conduct transactions.

One of them is a parabolic SAR indicator that is already in the metatrader and certainly we have often heard, but many still do not understand the true ability of this one indicator.

In order to better understand, let's look further at the true ability of this parabolic SAR indicator.

How to trade using PARABOLIC SAR

BUY STRATEGY

Wait for the parabolic SAR to appear perfectly under the candle

From the highest price, place a buy stop 3-5 pips with a parabolic SAR indicator that is formed perfectly under the candle

Place a stop loss of 5-10 pips from the lowest price of the candlestick

The market immediately exits when the parabolic SAR indicator shows a SELL signal, where the parabolic sar has formed perfectly above the candlestick

SELL STRATEGY

Wait until the parabolic SAR appears perfectly above the candle

From the lowest price, place the buy stop 3-5 pips with the parabolic SAR indicator that is formed perfectly above the candle

Place a stop loss of 5-10 pips from the highest price of the candlestick

The market immediately exits when the parabolic SAR indicator shows a BUY signal, where the parabolic sar has been formed perfectly below the candlestick

There is nothing perfect from an indicator, just like a parabolic SAR indicator that also has a few weaknesses and shortcomings, these are among them

The signal response is quite slow when the price moves down, this will be enough to disrupt the trading position made after the price shift.

With the response of parabolic SAR signals that are very slow like this, then the STOP LOSS placement will be in a very ideal location such as around support & resistance.

When prices are in consolidation, there will be a lot of false signals coming out and this is quite confusing for traders.

Behind all the shortcomings, there are advantages of the parabolic SAR indicator that many traders look at.

If you are a new trader then you can use this strategy to train your skills in trading.

When the market is trending, this indicator is a very good indicator and can work very well

Parabolic SAR is basically a pretty good indicator, but it would be better if you could open it with another indicator, for example Moving Average, this is intended to minimize false signals that often occur when the market is in a consolidation period.

This Parabolic SAR is also a pretty good swing indicator, and although sometimes it's often too late this indicator is good enough to show price changes.

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