Parabolic SAR Crude Oil Technical Analysis & Parabolic SAR Trading Signals

Developed by J. Welles Wilder.

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

• In an Uptrend, the stop and reversal will trail below the crude oil market price
• In a downward oil trend, the stop and reversal will trail above the crude oil market price

Crude Oil Technical Analysis and Generating Trading Signals

This oil indicator provides excellent exit points.

Exit Crude Trading Signal for Buy trades

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

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

Exit Oil Trading Signal for Sell trades

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

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

Exit Trading Signal for Buy & Sell trades