Parabolic Sar Indicator - Settings, Strategies and Tips
Vložit
- čas přidán 21. 07. 2024
- The parabolic SAR is a time and price indicator in technical trading. It's used to identify the direction of the asset’s price and the best entry and exit points. It is also used to highlight stops and reversals (i.e., when the direction of the asset’s price is likely to change). SAR is short for “stop and reversal system”. It was developed by J. Welles Wilder Jr., whom you might be familiar with from our article about the Relative Strength Index (RSI)
On a chart, the parabolic SAR is visualized as a sequence of dots next to the price bars. The reason it is called “parabolic” is because the resulting dots tend to form the shape of a parabola. The type of the trend determines the location of the parabola. It is located below the price during bullish trends, while during bearish trends, it stands above it.
Like any other technical indicator, the parabolic stop and reversal should be used in addition to others. Often, the trading signals it generates aren’t enough to confirm a particular move’s potential, which is why it is complemented by the moving average, stochastic, ADX, or other indicators.
Before we dive deeper into the exploration of the buy and sell signals generated by the indicator, it is important to mention that the parabolic SAR works mainly in trending markets. According to its father, J. Welles Wilder Jr., traders should use the indicator to identify the trend’s direction and then switch to alternatives to help them measure its strength.
EN: Whether you want to know more about the Parabolic SAR Indicator or any other topics, Earn2Trade has you covered!
-----------------------------------------------------------------------------------------------------------------------------------------------------
Read more about it in our blog - e2t.to/3d4CYle
Get Funded With Earn2Trade! Challenge The Gauntlet Mini™, our intraday futures trading evaluation.
The Gauntlet Mini™: e2t.to/yt-mini-en
0:00 Music Intro
0:13 Intro
1:20 The details
2:33 Take a look
4:31 Buy signals
8:04 Sell signals
10:20 The settings
11:01 Standard settings
11:50 Increased step value
12:50 Pros
14:29 Cons
15:13 Conclusion
Best video about parabolic SAR on you tube,with two unique points-.08 setting and distance between dots as indicator of trend strength.thanks a lot.
Thanks for your kind comment!
Best explanation on youtube, good job
Glad you think so! 😊
Best video indeed. Really cleared it up.
Glad it was helpful!
This is the most beautiful creatures & Techniques. l have apply for effective strategies. Best results. Thanks so nice.
You're most welcome!
Excellent analysis
Hey Sanjeev! Thank you for your comment. We really appreciate that you found this information helpful. Stay tuned for our upcoming videos!
Love your content!
Glad you enjoy it!
fantastic!!!! Thank you
Glad you liked it!🤗
Like always ... best video
Thank you so much 😀
Simple to understand 🙏
We hope it was helpful!
thank you sir am now have know of parabolic sar
You're welcome! We are glad it was useful 😄
Very nice explanation
Thanks and welcome!
Hi Chris. Great video. A couple questions:
when using this tool for analysis, is this something that should be applied to when trading derivatives e.g. CFD and so on or could I apply this if, for example, I wanted to buy a common stock from the NYSE?
When applying this, what is a good timeframe to use this? For example, when I change the timeframe from 1 day to 1 week, the signals shown contrast each other.
Thank you!
Hey Jubed! The Parabolic SAR indicator can really be used in any time frame, but of course that will depend on what kind of trader you are. On the other hand you could use it for those kinds of assets you are mentioning but keep in mind our content is mostly focused on futures trading. Have a great day!
Question: How do I stop PSAR from switching while the candle is forming (I want PSAR inside of some of my candles)
There are two setting on the indicator: Acceleration Factor (AF) and Maximum Acceleration (MA). By default, these are 0.02 and 0.2. Increasing the Acceleration Factor means the indicator will more closely track the price, leaving less room between the indicator and price and decreasing it will shift it away.
However it's important to understand that it is never finalized until the candle is finished. (It can't finish the math while the numbers are changing.)
謝謝你。
No problem! ☺
How can we use this if we have to be away from the PC ? Is this for day or intraday chart ? Newbie
Hello! Thanks for your comment. Since this it is an indicator that moves with trend, yes, it can really be applied to any time frame. 😊
Thanks
Hope it was helpful!
What is the best candle time period to use this for 15min increments or longer?
Hi Jeremy! The PSAR can be used on any time frame, however, the 5m, 15m, 30m, and hourly are the mostly common 🙂.
Hi...what time frame the best use sar
Hello! Since it is an indicator that moves with the trend it can be used with all time frames. 🙂
How to avoid false signals? Only with moving averages or please suggest any other good indicator
Hi! Please make sure to check out the rest of our videos. We have plenty of content about indicators that might help answer your question.
Works great with RSI
How?
Hey Redkar! Thanks for the tip. Has using the Parabolic SAR and RSI at the same time worked out nice for you?
@@wetradeforex1 use 60 40 Range for RSI and wait for Rsi crossing that range in smaller and higher timeframe
So basically we have to you the the combination of 0.08 and 0.2 or 0.08 and 0.8 ? please help
Hi! According to our video you should set the step to .02 and max step to .2
@@Earn2Trade Sir But You said to change thae value to 0.08 from 0.02
ON the standard settings count the sar sets back and treat them as a wave , like in Elliot Waves 🤔
hmmm that's an interesting approach...
The Parabolic SAR with the MACD, Alligator and EMA 200 is Money. 💰💰💰
😮 You think so?
@@Earn2Trade I know so!!!!!!
@@Prone-Ski_BX Did you leave the Alligator settings as they were or change them?
@@lucidlifestyle8799 as is.
@@lucidlifestyle8799 Can you please tell me what is Alligator? I am trading with PSAR and i am using squeeze momentum with it but....i will try Alligator if you tell me where to look. I typed it in search in tradingview and it is not there. If you have time to answer i would be grateful!! Thanks 🙂
good for 1 minute timeframe?
Hi! Please find more details on how to use the Parabolic SAR indicatior in our article:
blog.earn2trade.com/parabolic-sar/
Hope it helps!
Recommended step settings are between 0.018 to 0.022, I prefer 0.018
Thanks for your comment! Why is that?
An example or two would have been great. I hope I am not asking too much.
Thanks! We will consider that for future videos!
Macd works well
Do you use any other indicators besides the MACD?
Nice teaching tutorial. Thank You Sir.
You are welcome!