Pocket Option offers numerous popular tools which help traders to analyse the security price and one such tool that gained an immense amount of popularity is Parabolic SAR.
In this blog, I will cover everything about Parabolic SAR and how you can use the Parabolic SAR tool effectively on the Pocket Option trading platform.
About Parabolic SAR
Parabolic SAR is a technical analysis tool that was developed by J.Welles Wilder. This indicator is a unique indicator as it helps traders to find the exact trends and reversals using a series of dots.
The dots of the indicator oscillate either below or above the price using the same traders can interpret the upcoming trends and reversals. When the dots are above the price, It suggests a bearish trend and vice-versa When the dots are below the price, It suggests a bullish trend.
Key Takeaways
- Parabolic SAR, or Parabolic Stop and Reverse is it trend indicator that was developed by J. Welles Wilder.
- This indicator uses a series of dots that oscillate either above or below the price which helps traders determine the potential reversal points of an asset’s price.
- When the dots are below the price it suggests a bullish trend and similarly, when the dots are above the price it indicates a bearish trend.
How to add Parabolic SAR on the Pocket Option chart?
You can easily add Parabolic SAR on the Pocket Option chart. Just follow the steps given below
Step 1: Log in to your Pocket Option account. In case, you don’t have one click here.
Step 2: Select your desired currency and set the default chart to the candlestick.
Step 3: Next, click on the indicator button at the top of the page.
Step 4: Search for the Parabolic SAR name in the list and click the name.
Trading with Parabolic SAR
Now that you know How to add Parabolic SAR. let’s explore a few Parabolic SAR trading strategies that you can employ for best results.
Trend following: You can use PSAR to confirm the direction of the trend when the dots are below the price long consider going long and vice versa when the dots are above the price consider going short.
Combining with another indicator: Combining the PSAR with other trend indicators is one of the most popular and powerful trading strategies. You can use multiple indicators such as Relative Strength Index or Support and Resistance in combination with PSAR. For Instance when the dots are above the price plus the price is near the Resistance level you can consider going short similarly, when the dots are below the price plus the price is near the Support level you can consider going long.