The parabolic SAR is an indicator that is useful under trending conditions. In a non-trending environment, this indicator would give a lot of whip saw activity. In particular, this indicator can be helpful in determining when to exit a trend trade. The basic idea of the indicator is that the dots will stay above the candles in a downtrend as shown below in the daily chart of the EURGBP. In an uptrend, the dots would be below the candles. As soon as a candle crosses through the Parabolic SAR, the […]
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