Arman77
New Member
Parabolic SAR – Identify Potential Short-Term Reversal Points
Traders frequently utilize the parabolic SAR (Stop and Reverse). This is the best forex strategy to forecast the short-term momentum of currencies. Depending on the momentum of the asset, the parabolic SAR indication is represented visually on the chart of the asset as a series of dots positioned either above or below the price (as seen below).When the trend of the forex pair is upward, a little dot is placed below the price, and when the trend is downward, one is placed above it.
A move beyond this indicates a reversal, prompting the trader to expect a move in the opposite direction. A commonly used forex strategy is to set a trailing stop-loss order at the SAR value.
As we touched on, the best forex trading strategies use multiple indicators concurrently. For instance, the parabolic SAR works well with the moving average, ADX, and/or the stochastic oscillator.
