Parabolic SAR
Data regarding Parabolic SAR.
What is PSAR?
Developed by J. Welles Wilder, PSAR plots dots above or below price indicating trend direction and potential stop-loss levels.
Bullish (Dots Below)
- Dots appear BELOW price
- Indicates uptrend
- Dots act as trailing stop
Bearish (Dots Above)
- Dots appear ABOVE price
- Indicates downtrend
- Dots act as resistance
Trading Strategy
- Entry: When dots flip from above to below (buy) or below to above (sell)
- Stop Loss: At the current SAR dot position
- Trail: Move stop to each new dot as trade progresses
- Works best: In trending markets, struggles in ranges