SAR graphics look like parabola. As the stock price rises gradually, the rising speed of SAR will be accelerated, just like driving a car. The more gears, the faster the car runs. Once you step on the brakes, the speed will slow down. Judging from the stock price, it can be seen that the rise has met with resistance. SAR is like the patron saint of stock prices. Once the rising speed can't keep up, or the stock price reverses and falls, SAR will keep an eye on it. The stock price falling below SAR is an excellent signal to close the position and ship. The buying and selling points of SAR indicators are clear and easy to use:
1. When the stock price curve breaks through the SAR curve from bottom to top, it is a buy signal.
2. When the stock price curve falls below the SAR curve from top to bottom, it is a stop-loss selling signal.
3. When the stock price curve is above the SAR curve, it is a bull market, that is, a red circle appears.
4. When the stock price curve is lower than the SAR curve, it is a short market, that is, a green circle appears.
Practical skills of sar index parameters
(1)SAR index is simple to operate, and the trading point is clear, so it can be operated when there is a trading signal. It is especially suitable for small and medium-sized investors who have not entered the market for a long time, have little investment experience and lack trading skills.
(2) There is a parameter in (2)SAR index, which is called adjustment factor. Its function is similar to the time period selection in the moving average, and it is to adjust the sensitivity of indicators.
(3) (3) The parameters of the reference period for calculating the SAN index period are 2, such as 2 days, 2 weeks and 2 months.
(4) (4) The calculation period of SAR index varies from 2 to 8.
(5) If it is a bull market, SAR(0) is the lowest price in the near future; If it is a bear market, SAR(0) is the highest price at the top recently.
(6) Acceleration factor AF can be divided into upward acceleration factor and downward acceleration factor. If it is a bull market, it is an upward acceleration factor; If it is bearish, it is the downward acceleration factor.
(7)SAR is suitable for the "bull stock" that rises continuously, and will not be easily washed by the main shock.
(8)SAR is suitable for "bear stocks" that have been falling continuously and will not be fooled by the rebound on the way down.
(9)SAR is suitable for short-term band operation.
(10) Using SAR indicators can avoid being trapped for a long time and missing the bull market.