SAR East forex cashback a self-explanatory term that st cashbackforexbtcs for "stop and go" When price hits a specific price level set by the indicator, your trading decision has been created - you should not only exit your current position at the specified price, but also create a new position in the opposite direction at the same price. This is the only simple aspect of the forexcashbackcalculator cashback forex indicator; it was invented by WellesWilder in the late 1970s (along with many other core indicators). The Parabolic Turn is a hybrid indicator that combines trend direction with trend strength (e.g. momentum) and applies a trailing stop when certain criteria are met To calculate the Parabolic Turn, you first need to determine the highest point (the highest point of the trend); this highest point is called the Extreme Point (EP) Price (EP) to which you add an Acceleration Factor (AF) starting at 0.02 and then adding another 0.02 whenever the next higher point is touched regardless of the number of acceleration intervals you have, with a maximum AF of 0.20 The indicator is calculated by multiplying the difference between the Pole Price and the SAR of the previous period by the Acceleration Factor and then adding the SAR of the previous period In an uptrend, the Parabolic Turn In an uptrend, the indicator moves below the price curve and rises with the new price curve The indicator is shown in the figure Since the Parabolic Turn indicator is only a single number, it is displayed as a dot In this figure, the blue dot is the value of the Parabolic Turn indicator Note that the Parabolic Turn indicator is triggered at the third period after the high, indicating that the new low is the starting point of the reversal Now, we should consider the acceleration factor that will move in the opposite direction ( At this point, the Parabolic Turn point is above the price level, which means that if the price reaches that point, the downward trend is over and you should stop and turn back to the long side with the new low triggering the reversal. In most cases, you cant modify it unless the charting system allows you to specify the acceleration factor - the "step factor" - as another value In Forex, if you lower the acceleration factor to 0.01, you will get a smaller range of stops, but at the same time you will Research has shown that 0.02 is the appropriate regular parameter in Forex and that the Parabolic Turn indicator has several advantages; the first advantage is that it provides a stop at todays close (or the close of whatever session you are using) Since you dont know the next open, it is very convenient to easily get a stop before the new session opens. Another useful feature of the Parabolic Turn indicator is that it can alert you to the transient nature of the trend. Although the Parabolic Turn indicator is a lagging indicator, its forward-looking ability makes it intolerant of retracements and will produce reversals when you think the trend is still in progress. In addition, the Parabolic Steering Indicator has the interesting feature that when you draw support and resistance lines manually, they are usually aligned with the Parabolic Steering Indicators points Parabolic Steering Indicator and Hand-Drawn Resistance Lines The problem, of course, is that the Parabolic Steering Indicator is best suited for trending markets and will work in rangebound consolidation or high volatility (volatile markets) markets What is a "range consolidation trade" depends on which time period you want. A stable, neat price curve on a daily chart can be very bad on a 15-minute or 60-minute chart, but unfortunately, if you look at prices on multiple time periods, you will get very different parabolas. Now lets look at the same price on the daily chart. In that time period, the parabolic steering indicator has not given up on the trend and will allow you to remain long - although you should note that the lowest point of the last curve was very close to the last steering point Bollinger Bands are also plotted on the daily chart As we have learned in the Bollinger Bands course, Bollinger Bands in Forex usually - and extremely often - follow retracements after breakouts so you now have an unsolved mystery on the 360 minute chart, the Parabolic Turn On the daily chart, the indicator tells you to stop and turn, it tells you to hold on to your long positions, and it gives you reason to consider the retracement factor - the high above the top of the B-line tells you that the long side has been too strong, too fast, and may pull back Parabolic Turn indicator, price crosses the top of the Bollinger Bands (at the circles) of course, which parabolic The turn indicator is up to you, but the correct choice in this case is the 360-minute version See the chart below - the same price series on the 60-minute chart does continue to form a series of lower highs and lows (or downtrends) From the daily chart, we still dont know the magnitude of the retracement, but it clearly started from the highest point However, while the hourly chart validates the 360-minute Parabolic Turn indicator, it offers a whole new set of Parabolic Turn points, and at least some of them are absolutely wrong Parabolic Turn makes mistakes Wilder is trying to invent an all-in-one trading system that uses one indicator to generate entry and exit signals You can use the Parabolic Turn indicator as a stand-alone You can use the Parabolic Turn indicator as a stand-alone trading system, but it is more suitable for longer time periods - at least daily - and it works better in combination with other indicators The Parabolic Turn indicator performs well on every time period, generating only a small amount of double losses. However, on longer time periods (e.g. 360-minute charts and daily charts) the double loss is smaller, but given the way it is calculated, it consistently underperforms on multiple time periods. This helps you avoid double losses in normal retracements