Parabolic SAR

The parabolic SAR is a technical indicator which is placed on the chart, similar to bollinger bands.  The basic premise used when trading with this indicator is that one should be long when the price is above the indicator while one should sell or s

The video discusses the definition and application of the parabolic SAR.  SAR stands for "stop and reverse".  It is a great indicator which serves to provide a trailing stop loss on trades in a strongly trending market; however, it fails to do a

The video is a tutorial on how to use the parabolic SAR to set stop loss orders.  The speaker walks through how to configure this indicator to adapt to price moves in the stock.  There are two inputs used to set the sensitivity to price changes; the acceleration factor and the maximum constant.

The speaker covers the technical indicator known as the parabolic SAR.  Similar to the bollinger bands, this indicator is plotted over the price, rather than below it.  The parabolic SAR works well in trending market rather than rangebound on

Parabolic SAR Definition

The Parabolic SAR indicator was developed by Welles Wilder and mentioned in the book New Concepts in Technical Trading Systems. The Parabolic SAR stands for Parabolic Stop and Reversal. The indicator provides clear levels where securities are set to have a change in trend.