Parabolic SAR on Apple stocks trial
In general, the Parabolic SAR works well for capturing profits by entering the trade during a trend in a steady market, this is important to determine the price direction of an asset, as well as draw attention to when the price direction is changing.
Rules of using Parabolic SAR as below:
Rules of using Parabolic SAR as below:
However, the Parabolic SAR may produce false signals when the price moves sideway. Usually the indicator can used to set stop loss orders or known as the stop and reversal system. This is a very powerful technical indicator that can help spot the current trend direction, help with entering and exiting trades, and highlight potential reversals.
This SAR follows price movements, and allows the investor to capture profitable trends also indicates an exit point when the price may be starting to reverse.
This SAR follows price movements, and allows the investor to capture profitable trends also indicates an exit point when the price may be starting to reverse.
As for RSI (Relative Strength Index), the trends is shown at below:
When need to buy, Parabolic SAR jumps on price at the same time and it starts dots in the up direction. RSI needs to close above 50 level from lower to upper. When need to sell, Parabolic SAR jumps on price and it starts dots in the down direction. RSI needs to close above 50 level from upper to lower.
When need to buy, Parabolic SAR jumps on price at the same time and it starts dots in the up direction. RSI needs to close above 50 level from lower to upper. When need to sell, Parabolic SAR jumps on price and it starts dots in the down direction. RSI needs to close above 50 level from upper to lower.
My demonstration using $Apple(AAPL.US$
with the steps:
Step 1: Click the icon beside the timeframe icons
with the steps:
Step 1: Click the icon beside the timeframe icons
STEP 2: Choose the indicators
STEP 3: Add the indicator
STEP 4: Make sure you selected SAR parabolic and reverse in the indicator selection
STEP 5: Done and start analyse 😎
You may choose different time frame and see the trends.. Pls take a look at a single parabolic line (or dots) underneath the price bars in an uptrend, and above the price bars in a downtrend.
You may choose different time frame and see the trends.. Pls take a look at a single parabolic line (or dots) underneath the price bars in an uptrend, and above the price bars in a downtrend.
Some insights to understand better as below:
- When the dots are below price candlesticks, it indicates a bull market and the investors should seek opportunities to place buy orders.
- Meanwhile, when the parabolas are above price candlesticks, it shown in a a bear market and the investor should seek opportunities to place short sale orders.
Interesting!!
SAR + RSI interpretation:
This is a trend-following indicator used in trading, and also demonstrate the indicator dots will appear. So the idea is to buy when the dots move below the price bars and sell or short-sell when the dots move above the price bars.
This is my basic understanding on it, hope it helps!!![]()
This is my basic understanding on it, hope it helps!!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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James0007 : Thanks for sharing,
1994CM : Thank you 4 sharing
Ocho38 : thanks for the words of wisdom
Mike Hunt : Which chart for SAR are you talking? Daily?
whqqq : A very detailed article. Thank you for organizing
cola1010OP Mike Hunt: Hi, the SAR works on any time frame, you may select it.