What is Parabolic Sar Indicator and How to Use it?

When using momentum indicators, most traders focus on the RSI and stochastics indicators, which are more well known. However, along with these indicators, traders can also use the Parabolic SAR indicator which was developed by the creator of the RSI indicator; Welles Wilder. The indicator measures momentum in the market and highlights areas where momentum shows an increased chance of reversing directions.

The indicator is displayed as a series of dots placed either above or below price. The dots are used as a directional signal whereby dots placed below price give a bullish signal indicating that momentum is expected to remain to the upside.

Similarly, dots placed above price give a bearish signal indicating that momentum is expected to remain to the downside. The indicator assumes that a trader is already in a position and the dots represent a trailing stop. As such, the indicator is also known … Read the rest

Conservative trading strategy is the best way to save your investment

If you are thinking about joining the trading business, it is a good choice for you. This profession can give people a good chance of living their lives as well as earning money. You will also have to freedom like any other businesses. In here a retail trader is on the driving seat of his or her trading business. The planning and strategies will be made b that person. Then the execution will be done by that same person. It is a really interesting job for an enthusiastic human being. Diversity in this profession can give a different kind of experience every time you will be trading in the markets. But, for being stable with this business you also have to be a prop or successful trader. For that, you can try the long-term trading methods. In the following, we are going to talk about the time spread in the … Read the rest