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.
Parabolic index (SAR index) is also called stop-loss turning index, which is quite similar to the principle of moving average, and belongs to an analytical tool that pays equal attention to price and time. Because the points that make up SAR move in an arc, it is called "parabolic turn".
Practical skills of sar index parameters
The exponent of 1 SAR operation is simple, the trading point is clear, and it can be operated with 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.
There is a parameter in 2.2. SAR index, 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. The parameter for calculating the reference period is 3. SAN indicator period is 2, such as 2 days, 2 weeks, February, etc.
Calculation period of 4.4. SAR index ranges 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 "bull stocks" that are continuously pulled up, and will not be easily washed by the main shock.
8.SAR is suitable for "bear stocks" that continue to fall, and will not be fooled by the rebound on the way down.
9.SAR is suitable for short and medium band operation.
10. Using SAR indicators can avoid being trapped for a long time and missing the bull market.