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Friday, 19 August 2022


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Forex Parabolic standart indicator


Parabolic SAR is an indicator that is used to identify the end of the recent trends in forex technical analysis. Sar is an abbreviation of Stop And Reverse. It also shows the direction of the current trend in forex.

In forex trading, Entry level is as important as a take profit level. Most retail forex traders always ignore take profit but it is also important to maintain a good risk-reward ratio. PSAR indicator helps in figuring out take profit or exit levels.


How Parabolic SAR works in forex?

The parabolic SAR indicator works by placing a dot above or below the candlestick. The mathematical formula of this indicator is based on the acceleration factor of price and the extreme price value.

  • If dot is placed below the bar by PSAR indicator, then trend is bullish
  • If dot is placed above the bar by PSAR indicator, then trend is bearish

How to use PSAR indicator?

If the indicator is placing dots below the bar in a series but after placing few dots, the next dot appears above the candlestick then it shows that the bullish trend has been ended. Reversal of dots from above to below the candlestick indicates the end of the bearish trend.

This indicator is very simple to use but only in the trending markets. In a ranging market, it will not work at all because this indicator is basically designed to determine trend direction and end of a trend. Do not use Parabolic Sar indicator in the choppy market in forex trading

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