Parabolic SAR XAUUSD Analysis and Parabolic SAR
Developed by J. Welles Wilder & is used to set trailing xauusd trading price stops. This Trailing Stop Loss Gold Order Indicator was originally developed to analyze trending Gold Trading Markets. It is drawn as a gold chart overlay indicator, that is on the xauusd trading price chart itself.
This is a very accurate gold indicator for providing exit points & thus it is used to set trailing stops & is usually referred to as the "SAR" (stop-and-reversal) - Trailing Stop Loss Gold Order MetaTrader 4 Indicator.
This Trailing Stop Loss Gold Order MetaTrader 4 Indicator is drawn above or below the xauusd trading price - it is drawn as a series of dots. The length of movement of the SAR will be determined by the scale of the xauusd trading price movement.
In an upwards Gold trend the parabolic SAR will be below the xauusd trading price. As long as the up gold trend continues then SAR will continue being below the xauusd trading price - Trailing Stop Loss Gold Order Indicator. When xauusd trading price move down and the parabolic SAR goes above the xauusd trading price then the Gold trend reverses to bearish.
This trailing stop loss technical indicator uses a parabolic calculation to plot the series of dots, This means that if the xauusd trading price stops moving up with the same acceleration, the parabolic will continue with the same acceleration thus at some point the xauusd trading price will hit the indicator if it slows down too much.
Interpretation
This Trailing Stop Loss Gold Order MetaTrader 4 Indicator provides excellent exit points. You should close long positions when the price falls below the SAR & close short positions when the price rises above it.
If you are long, the Parabolic SAR - Trailing Stop Loss Gold Order MetaTrader 4 Indicator will move up every day, regardless of the direction the xauusd trading price is moving. The amount this gold indicator moves up depends on the amount that xauusd trading prices move.
The same technical analysis will also apply to a downwards gold trend, the parabolic SAR - Trailing Stop Loss Gold Order MetaTrader 4 Indicator will be above the xauusd price & it should remain above the price until the bearish down gold trend reverses.
The gold chart below shows an example of Parabolic SAR in an up gold trend gold market, You can see how it trailed below the xauusd trading price (Bullish Gold Trading Market) until when it was hit & the Gold trend reversed.
