Trading on the Direction of the Trend
December 6, 2021
What is the Parabolic SAR?
December 6, 2021

Setting the indicator

First, switch to the Japanese candlesticks chart.

You can set the period and the color of the indicator dots. For the period, we recommend leaving the standard value – 0.02.

If you increase it, the indicator will give more signals, but their accuracy will decrease.

If you decrease it, the signals will be more accurate, but there will be fewer of them.

The longer the indicator’s period, the greater the expiration time must be.

The farther the Parabolic SAR dots from the chart, the more stable the trend. The closer the dots, the more likely the trend is to reverse.

The Parabolic SAR gives accurate signals only if the market trend is strong.

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