How Parabolic SAR works:
The SAR is perhaps not theoretically classified as an “oscillator”, nevertheless the indicator is frequently utilized with oscillators
. The“dots that are parabolic are effortless to interpret. Each point represents a reversal that is potential rates behavior. The dots appear below cost indicia on an uptrend and above them on a downtrend. The SAR indicator is most effective in trending areas, but can provide false signals in ranging areas being sideways.
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