An indicator
on the trading platforms like PLUS500 is Parabolic SAR; it is an
indicator that is useful in a trend-following market and best if the investment is a long term investment.
The Parabolic
SAR indicator can not stand alone as a basis for a decision.
Parabolic
SAR stands for stop and reverse as the indicator provide the traders with
information about the trend direction; is the trend bearish is the indicator
line above the price line and if the market is bullish is the indicator line
below the price line.
The image illustrates
the price line and the parabolic SAR indicator.
More about parabolic SAR
On my article base is an article about trading Forex with the parabolic SAR.
In the
article is written that it is important testing the indicators to improve and
find the right trading tools; just to make it easier to understand how a test
could look like is a visualisation of a test in the table below.
More
information on how to test a trading strategy is in the article Forex Online Trading? How To Test a ForexTrading Strategy.
