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5.4 Trading Parabolic SAR instructions

Parabolic SAR is a technical indicator that permits us to get into developments. The indicator provides us with dots above and below candlesticks or value levels. on the whole terms, when the dots are above the candlesticks we must be selling and when they are beneath the candlesticks we must be shopping for. on the other hand, we can not use the Parabolic SAR on its own. we’ve to use it with any other indicator. The the reason is, is that the Parabolic SAR only gives us with a sign to buy or sell – it does not inform us if a development is forming. For that we want the momentum indicator or average Directional Index (ADX). after we see a positive reading in the Momentum indicator that a trend is happening and the dots in the Parabolic SAR are on the appropriate side of the candlestick, we are prepared to place an order.

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