Hey Traders, decided to make an informative post trading with the Parabolic Stop And Reverse Indicator. I will be only referring to bullish instances for the Parabolic SAR. For this example, I will be using the Daily Time-frame on BTC/USD. First & foremost, I use Parabolics to indicate the direction of the pair i'm trading. It also helps in finding great entry and exit points. On my chart I have my Parabolic Indicator colored Black. I have 3 Bullish Parabolic areas indicated as well as Daily Support & Resistance.
I want you to notice how each time price closes over the Parabolic upwards, it brings more bullish action. There are 3 occurrences indicated on my chart in circles. It will always only be 2 scenarios for me everytime this happen.
Scenario 1: Price continues the bullish movement reaching new highs.
Scenario 2: Price neglects close over Parabolic & decides to pullback. Almost certainly, price will retrace back to the closed over zone of the Parabolic.
I am new to TradingView, but definitely not Trading. I hope this helps your trading journey.
Leave Comments Below! They Are Welcomed & Appreciated!!
I want you to notice how each time price closes over the Parabolic upwards, it brings more bullish action. There are 3 occurrences indicated on my chart in circles. It will always only be 2 scenarios for me everytime this happen.
Scenario 1: Price continues the bullish movement reaching new highs.
Scenario 2: Price neglects close over Parabolic & decides to pullback. Almost certainly, price will retrace back to the closed over zone of the Parabolic.
I am new to TradingView, but definitely not Trading. I hope this helps your trading journey.
Leave Comments Below! They Are Welcomed & Appreciated!!