Parabolic SAR

While doing your research about trading, you come across various resources tools to help you in the process. Technical indicators crop up very early on this journey. Technical indicators are pattern-based signals used by traders. They identify opportunities and predict price behavior by analyzing historical trading statistics. They are based on data like price, open interest, and volume. Today we are discussing a popular technical indicator, the parabolic SAR. We will understand the basics of Parabolic SAR and learn how to start trading with it. We will also discuss the limitations of the tool.