What is the Parabolic SAR Indicator?

Parabolic SAR (Stop and Reverse) is a “trend-following” indicator that places a series of dots above or below the price. As per general market understanding:

When the dots move from below the price to above it, the indicator signals a potential change from an upward to a downward trend. The reverse applies when the dots move below the price.

How to Execute a Parabolic SAR Trading Strategy in India?

A Parabolic SAR trading strategy in India can use the “position of the dots” to identify the prevailing trend and potential exit points. For example, 

• A trader holding a long position may monitor a shift of the SAR dots from “below” the price to “above” it as an indication that the existing trend has weakened.

Generally, Parabolic SAR performs potentially better in directional markets and may produce repeated reversal signals when prices move sideways.

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