Parabolic SAR Metals Analysis & Parabolic SAR Metal Trade Signals

Created by J. Welles Wilder.

The Parabolic SAR is used to set trailing metals price stops. This metals indicator is usually referred to as the 'SAR' (stop-and-reversal) and it is used to follow metals price action closely.

• In an Uptrend, the stop and reversal will trail below the metal market metals price
• In a downwards metals trend, the stop and reversal will trail above the metal market metals price

Metals Trading Analysis & Generating Trading Signals

This metals indicator provides excellent exit points.

Exit Metals Trading Signal for Buy trades

Traders should close long positions when the metals price falls below the indicator.

If you are trading long i.e. The metals price is above the stop and reversal, the SAR will move up every day, regardless of the direction that metals price action is moving. The movement of the indicator depends on the number of pips that metals prices move. When the SAR changes the direction then the metal market trend also changes to down. This generates the exit signal for long trades.

Exit Metal Trading Signal for Sell trades

Traders should close short positions when the metals price rises above the indicator.

If you are trading short i.e. The metals price is below the stop and reversal, the SAR will move down every day, regardless of the direction that metals price action is moving. The movement of the indicator depends on the number of pips that metals prices move. When the SAR changes the direction then the metal market trend also changes to up. This generates the exit signal for short trades.

Exit Trading Signal for Buy & Sell trades