Greetings to all readers of this great platform, I want to start by greeting especially the users who are part of this community of #LeoFinance, yesterday I talked a little about Decisions in trading using the Parabolic SAR and divergence and convergence (MACD), if you want to see more information I leave here the article, talking a little about the characteristics of these 2 indicators, today I want to explain a little about the signals issued for an entry in purchase or exit of the market (sale).
 Screenshot taken at: Pixabay |
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Generally we always need good decisions in trading, based on a good market analysis, which can be achieved by studying the indicators properly, which leads to a good decision making, therefore, it is necessary that we know how to use each indicator.
In the present opportunity, I want to reinforce the information regarding the Parabolic SAR, as are the moments of entry and exit of the market, and what signals it emits to confirm those markets, first of all, it is necessary to know that this technical indicator can be used in any temporality.
On the other hand, it is very important to highlight that it is a very useful indicator in both bullish and bearish trends, giving strong signals of change in the price especially in the temporalities of 1 day or more, that is my personal criterion, since I have evaluated it in several temporalities to study how its behavior works.
In order to have more knowledge regarding which are the signals that it emits, I proceed to show a graph regarding the behavior of the HIVE.
 Screenshot taken at: Binance |
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When observing the graph we can have several points in consideration, clearly a point appears when there is a change of trend, in case the point appears at the bottom of the graph can be considered as a change of uptrend and time to buy, on the other hand, if the point appears at the top of the graph, we can consider it as a change of downtrend, therefore, time to sell.
Now, do you think it is possible to make operations only with this indicator? From my perspective it is impossible, since no technical indicator by itself generates certainty, although it shows these changes, we must complement it with other indicators that help us to ratify this information, to know the strength of the trend, how much it can go up or down in price, and thus know the possible profit margin.
The parabolic SAR, can generate many benefits for the study of market behavior, so it is considered very useful for people who perform trading, being an indicator that validates the trend changes, and thus generates signals to buy or sell, this is a great advantage for people who perform trading, now well, each person complements it with the indicators of your choice, how do you consider this indicator.
