Technical analysis is
the most preferred way of trading in the Stock market. There are more than
dozen of indicators which are studied in the Technical analysis. In this
article we will discuss about the Parabolic SAR indicator and how it can be
used in conjunction with the other indicators to generate accurate Stock market
Tips. The indicator can be used to generate accurate intraday trading tips and equitytips in the form of buy and sell calls.
The parabolic SAR is a
trend following indicator. It indicates the current trend and helps in
following the trend. It is shown by the black dots on the price versus time
graph. The arrangement of graph indicates whether the price movement is in
uptrend, downtrend or no trend. Thus the trend following strategies can be use
to trade effectively in the intraday as well as short term trading.
The parabolic SAR can
be used in conjunction with other indicators like ADX and RSI. The ADX
indicator determines the strength of the trend in place. It determines whether
the trend is a strong trend or a weak trend. Thus the ADX and SAR can both be
used together to generate confident signals for trading.
The parabolic SAR can
also be used with RSI. The RSI indicator will help in determining the oversold
and overbought levels. There are high chances of trend reversals at these
overbought and oversold levels. Thus the trend reversal signals can be
confirmed from both the RSI as well as Parabolic SAR.
The above strategies
are used by the technical analysts in financial advisory firms. Money Classic Research is one such
reputed advisory firm which provides accurate stock market tips in the form of
buy and sell calls with proper stop loss. The money classic research is also
SEBI registered and ISO certified.
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