Parabolic SAR

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Welcome to currency trading with Profiforex!
This video is devoted to Parabolic SAR.
To apply this indicator to the chart, press the "Indicators" button on the toolbar and choose "Trend" - "Parabolic SAR."

Subsequently, the window in which we change the indicators properties appears.Here we can choose the step, maximum and visualization settings of the indicator.

The parabolic SAR indicator is unique. It doesn't give a clear entry strategy but can be used to exit the deal on the principle of a trailing stop.As you can see in the chart, this indicator looks like the sequence of points following the trend.

The research shows that this indicator can be used only to place stop-losses.

The advice, as given in classic literature, to use it as the entry indicator (moreover as a reverse indicator), can lead to huge losses.Perhaps we just couldn't find another suitable indicator to use as a filter.Still, this indicator can be a huge psychological advantage for beginners.Using Parabolic, it's easy to learn how to "allow profit to grow" instead of cutting your profit, ignoring one of the main principles of trading on the Forex market.