Parabolic SAR Gold Trading Analysis & Parabolic SAR Trading Signals

Created by J. Welles Wilder.

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

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

Gold Trading Analysis & Generating Trading Signals

This gold technical indicator provides excellent exit points.

Exit Gold Trading Signal for Buy trades

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

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

Exit XAUUSD Trading Signal for Sell trades

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

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

Exit Signal for Buy and Sell trades