Parabolic SAR

-Was developed by Welles wilder.
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- The parabolic SAR canA parabolic SAR(Stop and Reversal) indicator is a graphically shown on the chart of an asset as a series of dots placed either above or below the candle sticks chart.When the series of dots are below the candle sticks chart,then that is an indication of an upward trend of the market thus a trader should enter a buy position while when they are placed above the candle sticks chart,then that is an indication of a downward trend of the market thus a trader should enter a buy position. also direct the trader on where to place the stop loss order.
-Here is an indicator of parabolic SAR;



The figure above shows a parabolic SAR.The indicator is able to show the trader where to enter and exit the market.The parabolic SAR are in dotted line.Some dotted line are being drawn below the candle sticks chart while others are being drawn above the candle sticks chart.The one drawn below the candle stick charts are an indication of an upward trend while those drawn above the candle stick chart are an indication of a downward trend of the market.For an upward trend market,there is a red arrow showing the trader to enter a buy position when price closes above the SAR at that point thus the trader should close the sell position and enter a buy position.For a downward trend market,there is a red arrow showing the trader to enter a sell position when the price closes below SAR at that point thus the trader should close the buy position and enter the sell position.

Recommendation:if you are a day trader,use 1min,5min and 15min chart while if you are a swing trader use 1hour time frame and above if you want parabolic SAR to work for you well.