Parabolic SAR Gold Trading Analysis and Parabolic SAR

Developed by J. Welles Wilder and is used to set trailing xauusd 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 price chart itself.

This is a very accurate gold indicator for providing exit points and thus it is used to set trailing stops and is usually referred to as the "SAR" (stop-and-reversal) - Trailing Stop Loss Gold Order MetaTrader 5 Gold Technical Indicator.

This Trailing Stop Loss Gold Order MetaTrader 5 Gold Indicator is drawn above or below the xauusd 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 price movement.

In an upward Gold trend the parabolic SAR will be below the gold price. As long as the up gold trend continues then the SAR will continue being below the xauusd price - Trailing Stop Loss Gold Order Indicator. When xauusd price move down and the parabolic SAR goes above the xauusd price then the Gold trend reverses to bearish.

This trailing stop loss gold indicator uses a parabolic calculation to draw the series of dots, This means that if the xauusd price stops moving up with the same acceleration, the parabolic will continue with the same acceleration thus at some point the xauusd price will hit the indicator if it slows down too much.

Interpretation

This Trailing Stop Loss Gold Order MetaTrader 5 Gold Indicator provides excellent exit points. You should close long positions when the xauusd price falls below the SAR and close short positions when the xauusd price rises above it.

If you are long, the Parabolic SAR - Trailing Stop Loss Gold Order MetaTrader 5 Gold Indicator will move up every day, regardless of the direction the xauusd price is moving. The amount this gold indicator moves up depends on the amount that gold prices move.

The same technical analysis will also apply to a downward gold trend, the parabolic SAR - Trailing Stop Loss Gold Order MetaTrader 5 Gold Indicator will be above the xauusd price and it should remain above the xauusd price until the bearish down gold trend reverses.

The gold chart below shows an example of the Parabolic SAR in an up gold trend gold market, You can see how it trailed below the xauusd price (Bullish Gold Trading Market) until when it was hit and the Gold trend reversed.