SAR stands for stop and reverse. Parabolic sar is used to trade signal to signal. However if we go for all the long and short trades based on the signals we may lose money. The idea behind SAR is to identify long term trends and take advantage of them. This video shows you how to use parabolic SAR indicator along with other techniques like trend line break outs etc for forex trading. The author of this video asks to identify crossovers of the new highs or new lows before entering the trading. According to the author use break outs along with SAR for forex trading.
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