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  1. #1
    Legendry Member Michael Hodges's Avatar

    PSAR-Parabolic Stop And Reverse, A Great Tool For Active Traders !!!

    The PSAR, parabolic stop and reverse, is a great tool for active traders. It was first introduced in the futures market where traders often want to ALWAYS have a position open. It works by measuring price action, and displaying a dot either above or below the candle. When price is above the candle the market is bullish, when price is below the candle the market is bearish. The signals come when the dots SWITCH sides. When the dots switch from above to below it means STOP, REVERSE your position. The same is true when they switch from below to above. For binary traders this means active signals in a way that nearly no other tool will give. To trade merely enter a put when the dots first appear above price action, and then enter a call when they switch to the lower side. Expiry will be dictated by the time frame you are trading in, and perhaps by other indicators. It is possible to use this with other tools, support and resistance for one, trend lines for another. One way to weed out the potentially bad trades is to only trade with the trend, however it is you like to view it.

    This is a link to Bogdan's original review of the tool, he recommends for advanced traders only.

    PSAR Tool Review, Parabolic Stop and Reverse

  2. #2
    Legendry Member willyw's Avatar
    Yes, Paraboblic SAR is a great tool providing signals. At times it goes have false signals. Its best to enter trades after 2 or 3 dots have switched sides.

  3. #3
    Legendry Member milos's Avatar
    So far I used Parabolic SAR for forex trading only. I've seen it can be used for binary options trading.

  4. #4
    Legendry Member Michael Hodges's Avatar
    When I use it I like to use an underlying trend and then only trade in that direction. However, for short term trading if you are quick and take signals as soon as they appear with one candle of expiry I've had some decent success.

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