Parabolic SAR Energy Technical Analysis & Parabolic SAR Trading Signals

Developed by J. Welles Wilder.

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

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

Energy Technical Analysis & How to Generate Trading Signals

This energies indicator provides excellent exit points.

Exit Energy Trading Signal for Buy trades

Traders should close long trade positions when price falls below the technical indicator.

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

Exit Energies Trading Signal for Sell trades

Traders should close short trades when price rises above the technical indicator.

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

Exit Trading Signal for Buy & Sell trades