Stop loss index is a technical analysis tool to observe and give trading points by adjusting the position of stop loss point at any time through parabolic motion after combining time and price factors. Because the stop-loss point (also called turning point SAR) moves in a parabolic way, it is also called parabolic turning index. Although the calculation method of stop-loss SAR is troublesome, its application is very simple. When the stock price line is above the SAR line, it shows that the buyer is strong; When the stock price line is lower than the SAR line, it shows that the seller is stronger. The judgment signal is mainly the intersection of two lines: when the stock price line falls below the SAR line, it is a sell signal, and vice versa.

Compared with other technical analysis indicators, the trading point of SAR indicators is very clear. Because the time variable is used to adjust the stop loss position, the fluctuation range of SAR is closely related to the fluctuation range of the actual price and the length of time. Therefore, this index can be applied to the fluctuation process of different stock prices. SAR is loved by many investors because of its simple operation principle. Long-term actual combat statistics show that long-term use of SAR indicators can keep a small loss and a big win, and there are few cases of deep quilt cover. In addition, SAR's clear trading signal makes it more suitable for the operation of powerful stocks or tracking the market above the intermediate level. In order to avoid premature selling, SAR can be used to judge when to go out for the hot stocks with a certain cumulative increase and accelerated volume in the medium and long-term band. For hot stocks in the market, you can stop losses or lighten positions in time by turning green with SAR indicators. If we can make good use of SAR stop loss index, investors can generally stop loss and make profits calmly.

SAR indicators can also be used in combination with K-line and volume-price relationship. If the stock price suddenly rises continuously after a long period of consolidation at the bottom and the SAR indicator changes from green to red, it is very likely that the stock will form a mid-line upward trend.

At this time, if there is a certain theme to cooperate with, you can intervene at the first time when the SAR indicator turns red. In addition, after the stock price rises, it will generally fall back temporarily. At this time, the vicinity of the red SAR index often becomes an important support reference position, and it is also a good price for re-intervention.

Because SAR reflects a long-term or medium-term trend, there is a certain lag in the time of sending signals. When using SAR index to judge whether the stock price is at the bottom or at the top, it should be comprehensively analyzed with the long-term moving average to ensure high accuracy. The long-term moving average of stock price, such as quarterly line, semi-annual line, annual line, etc., can play an important role in supporting or pressing the price change, and SAR index can also give the position of support or pressure in the stock price operation. At this time, SAR indicators and long-term moving averages are combined to verify each other. When the signal given by one indicator can be verified by another indicator, the reliability of judging the top or bottom will be greatly improved.

-