This negotiation strategy will teach you how to detect new trends
The Parabolic Sar Negotiation tool is a dynamic trading tool that is used by many professional traders in each market (Forex, Stocks, options, futures). It is best used when the market is in trend. If the market is choppy, the market moves sideways, this tool
This was developed by Welles Wilder when he introduced this in his book in 1978 which was titled, "New Concepts in the systems of technical commerce".
What basically does this tool is to help traders determine when the current trend will end or about to end. The way it shows you this is by the points that appear above or below the price candle. appear above or below the current sail for a specific reason. If the point is above the sail will be a sales signal or downward trend. However, if the point is under the candle, this may be a sign to buy or a bullish trend. When the change occurs (the point goes from bottom to top the next candle) This indicates that it may be starting a potential reversal.
Some may think why they don't exchange the dots. When you invest, just make an entry at that price. Technically you can trade like that and win some, but this is a very risky way to trade with this. You need other tools to validate this potential trend reversal.
As you can see above, if you just change the dots, this will happen frequently. That's why we use this indicator and two moving stockings to determine an entry point. Moving Stockings will help verify that a reversal is actually occurring. The combination of these indicators will give you precise trend reversal adjustments. This strategy can be used in any time period in your table. So traders of the day, traders swing and resellers are welcome to use this kind of strategy. Here are the indicators you need to apply in your chart to use this business strategy:
1. Parabolic Sar: Standard configuration
2. Moving Average length 40 = green color in our example
3.20-Length Moving average = red color in our example
Rules for short operations using this strategy
This strategy is tested with different pairs with a 90% effectiveness
To see more details and rules that we will have to respect please download the Archibo that I share.
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