4. the new perseption of Parabolic SAR

In 1978 in his book "New Concepts in Technical Trading", j. Welles Wilder introduced the Parabolic SAR (commonly abbreviated as its mention being only with the SAR only) along with RSI as one of the main indicators in trading. Own is short for SAR Stop And Reverse more or less defined as the determining point indicator Stop Loss

in trading. In its development in the future, Parabolic SAR becomes one of effective indicators in determining the market conditions that are trend (trending market) along with the facilities named Trailing Distance a lot is provided on a wide range of forex trading platform.


The use of Parabolic SAR

Uses exactly the same Parabolic SAR with Moving Average trend indicator or another. It's just that Wilder created this indicator for mengeliminir lack MA i.e. its form curve so often occurs e.g. interpretations. With the SAR in the form of dots, the trend up or down to look more certain and no longer give rise to misinterpretations.

In the SAR, as prices are in the trend of rising, then the SAR under point of price movement. Conversely when the market was in a down trend then the SAR points are at the top of the price movement. Look at the following picture:

in the image above looks point of SAR is above the bar which indicates that the price trend was down.

Now let's look at the picture below:

As already mentioned above, the excess of Parabolic SAR is how it looks in the form of points and thus make it easier for a person in reading the State of the market. Traders saw enough where the position of the point of the SAR are below or above the bar to find out the trends that are going on.
More than that, the farther the distance between the point of the SAR with the highest or lowest price of the bar, it signifies the stronger trend goes up/down

happened. Once you know how to read the Parabolic SAR, I think now it's easier to use it to perform action buy, sell or hold. Need to be presented here, that it is very recommended to use SAR along with other indicators (I personally recommend adding it with indicators like Stochastic oscillator consequential or RSI)

This is the same as the other indicators of the trend, it is often an indicator of this kind of sluggish in accommodating changes in prices. Likewise with the SAR. That is why it is recommended to add an oscillator which tend to be faster so the two can be mutually offsetting. SAR can reduce speed Oscillator while Oscillator can be valid otherwise.

Let us look at the picture below:



In the area that I've circled with purple is the second confirmation indicator shows the same direction. Stochastic signal that the price trend was up and the point of the SAR are also currently under which also shows the price moves up. Buy action can be done in these circumstances.

The second purple circles on the right also shows the same case but better results because apparently the point of SAR and Stochastic indicate the condition of the uptrend but in a State where the uptrend has just begun. Thus the advantage gained can be much larger than the first purple circle.

Simple isn't it? You can integrate SAR with other indicators such as MACD or RSI indicator which depended the best and fits your trading style everyday. Please bear in mind here that every trader has his favorite indicators respectively.


Parabolic SAR and Stop Loss

Now we enter in a discussion of the usefulness of the SAR are quite unique here. Even just the SAR has the ability like this IE uses the deciding point as SAR Stop Loss. Remember that the SAR is short for Stop and Reverse more or less it means to stop and then reverses direction.

The point of the SAR not only can be used as a decisive trend up or down trend. Similarly, the distance between the lowest point of the SAR with the price or the highest bar is not only can be used as a powerful determinant of weak trend is happening. More than that, if you are a trader with Stop Loss (trading strongly recommended using the Stop), then the good news the SAR point you can use Your Stop Loss point sebabagi.

Some of the newcomers are mostly very hate this one facility, namely the Stop Loss. The reason is because if they put up a Stop Loss so often times they touch the Stop point of the position which means it is a loss for them. Finally they opted to let the price of terfloating with santainya while waiting for the night "ends" and "the morning shines" aka the price reverses direction so that their negative position switch with positive

. The bad news for those who trade in this way is that the time will come where maybe the night would never end and the morning never came aka margin call occurs. It's not just one or two times I see it, but most of those who trade without a stop loss always leads to the same abyss. Something that I already explain thousands of times to any investor newbies who amazingly are very rarely observed.

Remember my brother, Stop Loss there is not to make You lose money. He is there to limit your losses and distancing yourself from nightmare called margin call. Of course you don't want to not trade just a coupla times and then smashed just because of one position. None trader never wrong in determining position. Even I who wrote this article often mired because of fault position. It doesn't matter how many times you were wrong in determining position in the aggregate is important you keep the profit!

Now let's get back on the discussion of SAR and Our Stop Loss. Already deviated too far this ...

You can also use the facilities at the combine that with this SAR facilities trailing distance on the platform. Different with Stop Loss that are static and cannot be shifted automatically, a trailing Stop-Loss is a dynamic or can move follows price movements.

For example in the image above, if you open a Buy position on the price it means that there is a distance of 1.9635 44 point with the point of Your first Stop (1.9635-1.9591). That means you can determine that the distance Stop you shouldn't be more than 44 point if you are using a Traling Distance as your Stop. If the price moves up to 1.9700 then automatically Stop Loss You will shift to fixed alias 1.9656 a 44 point if you use the Stop Loss with a model

Trailing Distance. Most of the forex trading platform provides a facility to trailing customers. If you are a SAR user, you may need to use this facility.

Capital GAINS on a platform (Forex.com) there is also this facility. Basically the opening position and add point trail is one of the great steps in determining the policies of our profit. With the trail, You no longer need to add the Limit as a limitation of your benefit. Trailing can be useful as a Stop Loss and also Limit.
 
The character of the Bollinger Bands and the use of Shared RSI

Each indicator must have the character of each. So also with the indicators on this one. One thing that is unique is the Bollinger Bands enables each person to interpret these indicators with their respective way. Although there are some fixed rule in the Bollinger Bands, but it could have been a trader with other traders have different ways and different usage in the wear of Bollinger Bands. The following is a general character applicable to the Bollinger Bands:


Bollinger Bands is an indicator of the beginning of that cannot be used as an indicator of the action. Should be used for authorized along with other indicators. Specify one of the best indicators for you as an indicator of action, however, do not wear more than one action indicators. Some indicators of a good action is RSI, Stochastic or momentum.

up to you. In general the prices will move in the belt, but can also price moves outside of the belt. This can mean a reversal will occur or on the contrary the strengthening trend which is ongoing. To find out we can see an indicator of action we wear.

The determination of the period in the Bollinger Bands also effect here. The smaller the period used then the width of the belt will be getting smaller and so vice versa.


If Bollinger Bands We mix with RSI, so the result:

If the price is outside the upper band or similar, while the RSI is still below the overbought zone, then this means there will be a continuation of the trend that is going on. Conversely when the RSI had been overbought and was leaving the diarea area overbought, so this means there will be a reversal of the trend in some candle

to the fore. When the price was lower or the same band on the outside, while the RSI is still below the oversold zone, then this means there will be a continuation of the trend that is going on. Conversely when the RSI had been oversold and are leaving the diarea area oversold, then this means there will be a reversal of the trend in some candle in the future.