Parabolic SAR helps trade an established trend while providing long and short trailing stop positions. The “SAR” stands for “Stop and Reverse”. It does not work in sideways markets or consolidations, and should not be relied on in those markets. Only use it during strong uptrends or downtrends. Ignore it otherwise.

The trade strategy is simple. If the trend is up, buy when the indicator is below price for the first time. If the trend is down, sell when the indicator is above price for the first time.

Use SAR to liquidate the position and book profits if the Parabolic SAR dots are broken. In an uptrend, liquidate when dots are above the first time. In a downtrend, liquidate when dots appear above the first time.

American Markets Analysis:

• Summaries of American Economic Structure
• Performance of Major
• Imports/Exports
• Federal Reserve Mandate versus Expectations
• Performance Indexes of U.S Economy
• Economically Correlated U.S Dollar Projections
• Large Trading Fund Index Sentiment Readings
• Market Wide Earnings Versus Valuations
• Fundamental Ranking of U.S Business Sectors
• Best and Worst Future Consensus Estimates
• Occasional: Firm Fundamental Strength Report
• List of Technicals to Look for While Trading