Parabolic SAR A tool designed for the technical analysis of a parabolic system – parabolic sar. He got this name because of the pattern stops during the monotonous movement of the market resembling a parabola. Its unique feature of the work is the response to the passage of time and price changes, but most traders pay attention to prices while ignoring time. Another unique feature of the indicator is its low sensitivity to trend reversals at the beginning, and over time, when the trend is aging, it tightens the conditions for reversal. The older the trend becomes, the smaller the price deviation causes the signal to reverse the position. Parabolic used in cases where the market is in a trend, who does not have time that may be late, if the trend begins to become obsolete. Parabolic SAR is designed so that the merchant always remains on the market. If the parabolic stops in a position for an increase, this means that it is necessary to open a position for a fall from the same price level. If the parabolic has stopped in a position for a fall, this means that the position for an increase must be started at the same time and at the same price. The work of Parabolic SAR is based on the rule to shift the order in the direction of closing a position in the direction of the trend and never do it in the opposite direction. Parabolic is able to protect the merchant from his own indecision and raise the level of his discipline. With its help, an order is set to close a position at the same time at which it opens and moves in the direction of the trend. In the event that a trader opens a short or long position and the price remains constant, parabolic sar sends a signal indicating that the time to open a position is incorrect. No need to sell or buy if there is no certainty that prices will rise or fall immediately after the transaction. Parabolic does not allow to follow the trend leading to nowhere, it shifts the order to close the position in the direction of the trend, which is equivalent to the team – earn or leave. If a trader decides to use a parabola for calculating stop orders in his chosen market, then you need to calculate the data obtained in the last few weeks by setting a stop order at the past minimum or maximum.

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