Forex Indicator - Parabolic SAR
Hi guys, today I wanna show to all of you about one of forex indicator that can make profit, Parabolic SAR. Straight to the point, technically Parabolic SAR is stand for Stop And Reverse. Parabolic SAR come from a guy with the name J. Welles Wilder (I never meet him) to identify price of market trend. FYI, Parabolic SAR can be used for the purpose of trailing stop loss base on market price which in the parabolic curve when the trend changing.
Generally, parabolic’s trend can be predictable. For example, when a parabolic under the selling value the trend is bullish. Instead of the parabolic at the top of selling value so the trend is obviously bearish.
Hey!!!What are you talking about huh??hehe
Ok2..I don’t want to disjointed anymore..lol
Here the Setting
Step 1 - Display Box
For sure, open your metatrader forex trading platform first. Then click on Insert > Indicator > Trend > Parabolic SAR. The following box will appear and make setting as shown in the picture below:
Step 2 - Parameter
Step 3 - Visualisation
How to Use?
Guys, you can use Parabolic SAR as a guide to determine how strong the starting point of trend by referring to the points that yield by Parabolic SAR. Keep reading to find how to use this unique indicator 
Open Buy Position
If you want to open buy position, make sure that you do it after you see one or more bullish point as shown in the figure above. Then, you can take profit by counting the Parabolic SAR’s point. Take profit after you see 3 to 5 Parabolic SAR’s points. The reason is usually the forth bullish point will produce the strong momentum to move upward at the maximum. So take profit between the third and fifth point because reversal may happen unexpectedly.
Open Sell Position
The rules is same as you open the buy position but for sell position you need to make sure that you see the bearish point. Refer to figure above.
Take Attention for this Important Thing
Notice that, Parabolic SAR will always give you the false signal. So I wanna tell you to NOT use Parabolic SAR alone. That mean, Parabolic SAR must be use with other indicator as well. But, I can suggest you several tips to use Parabolic SAR.
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- Please open sell or buy position after Parabolic SAR produce the starting point.
- Take profit between third and fifth point to avoid any trend reversal problem. (Greed is good, sometimes not).
- Do NOT open any position in the middle of Parabolic SAR (after fifth point).
- Do NOT rely on Parabolic SAR only without combination of other indicator.
- Parabolic SAR only suitable to use as guide to measure the strength of bullish or bearish trend.
- Use Parabolic SAR with other indicator such as RSI or Stoch (I will explaine later).
- Be sure to refer to all timeframe (from big to small - MN, W1, D1, H4, H1,..,..,M1) to avoid mistake when enter the trend.
- The suitable timeframe for Parabolic SAR is MN, W1, D1,H4 and H1.
- The last but not least, be confident with your decision and be confident with your indicator.
Thats all for today, see you again for RSI and Stoch guide:) Thanks for reading..
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Comments
Yep..exactly..u can’t use SAR alone. There are too many false signals..Need to use SAR with other indicator..
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Its been a while since i use Parabolic Sar as my indicator. I think maybe this indicator doesnt suite me, cause it’s pretty lagging.