Parabolic SAR Commodity Technical Analysis & Parabolic SAR Trading Signals

Created by J. Welles Wilder.

The Parabolic SAR is used to set trailing commodities trading price stops. This commodity indicator is usually referred to as the 'SAR' (stop-and-reversal) and it is used to follow commodities price action closely.

• In an Uptrend, the stop and reversal will trail below the commodity market commodities trading price
• In a downwards commodity trend, the stop and reversal will trail above the commodity market commodities trading price

Commodity Technical Analysis & How to Generate Trading Signals

This commodity technical indicator provides excellent exit points.

Exit Commodities Trading Signal for Buy trades

Traders should close long positions when the commodities trading price falls below the indicator.

If you are trading long i.e. The commodities trading price is above the stop and reversal, the SAR will move up every day, regardless of the direction that commodities trading price action is moving. Movement of the indicator depends on the number of pips that commodities trading prices move. When the SAR changes the direction then the commodity market commodity trend also changes to down. This generates the exit signal for long trades.

Exit Commodity Trading Signal for Sell trades

Traders should close short positions when the commodities trading price rises above the indicator.

If you are trading short i.e. The commodities trading price is below the stop and reversal, the SAR will move down every day, regardless of the direction that commodities trading price action is moving. Movement of the indicator depends on the number of pips that commodities trading prices move. When the SAR changes the direction then the commodity market commodity trend also changes to up. This generates the exit signal for short trades.

Exit Signal for Buy and Sell trades