Forex : Technical Indicators : Parabolic Sar Indicator

I Talked in previous article about RSI Indicator you can read it through this link

.Today I will explain Parabolic Sar Indicator  and how to use it in Forex trading

So far , we showed you the indicators that focus mainly to hold the beginning of new trends , although it's very important that we be able to distinguish the new trends ,also it's important to be able to determine where will be the end of this trend , and this will can determining the right time to open deals as well the right time to close the deals

Parabolic Sar Indicator

The Stop and reversal indicator (Parabolic Sar) is developing to RSI indicator and it's considered the second indicator that can help us to decide where  to close the deal exactly,the stop and reversal indicator is indicator puts group of points on the chart and indicates to the possibility of reverse movement for the price

At the below chart you can to see that the points move instead of that are under the candles during bullish trend ,the points become above of the candles during bearish trend after trend reversal

Parabolic Sar Indicator

This indicator is provided on Metatrader program , we can add it by clicking on insert then indicators then trend then parabolic sar

.Best frame time with Parabolic Sar is 15 minutes

? How to Trade Using Parabolic Sar Indicator

: The Using Parabolic Sar as below

.Buying Signal : When the point be under the candle ,that is buying signal 

.Selling Signal : When the point be above of the candle ,that is selling signal 

: Closing The Deal

If you opened buying deal , you close it if the point of parabolic sar appeared with the color red higher than the candle

If you opened buying deal , you close it if the point of parabolic sar appeared with the color green lower than the candle