Increase your Profitablity ratio with Parabolic SAR on Deriv

PSAR or Parabolic SAR is one of the most unique and powerful tools that the Deriv trading platform offers. In this article, we will discuss everything about Parabolic SAR and how you can use the indicator to find buying and selling opportunities.

What is Parabolic SARĀ ?

Parabolic SAR is a technical analysis tool developed by J. Welles Wilder. this indicator of uses of a series of dots above or below the price. it is primarily used to determine the potential points in the price movement of an asset.

The indicator derives its name from the parabolic shape it creates when plotted on the price chart. when you see the PSAR dots above the price it signals an upcoming bearish trend and vice versa, when you see the PSAR dots below the price it signals an upcoming bullish trend.

The distance between the dots and the price represents the strength of the trend. when you see a big distance between the price and the dots it suggests a strong trend vice versa when you see a small distance between the dots and the price it suggests a weak trend.

Unboxing Parabolic SAR indicator on Deriv

 

To open the indicator you need to log in to your Deriv account. Next, click on the indicator button and search for the indicator in the trend section and click the name. when you open the indicator you will see the important components such as Minimum AF (Acceleration Factor) and Maximum AF (Acceleration Factor).

The Minimum AF (Acceleration Factor) determines the rate at which the indicator accelerates towards the price while the Maximum AF (Acceleration Factor) define the maximum value the AF can reach.

Buy with Parabolic SAR dots below the price

 

 

When you see the PSAR dots below the price it signals an upcoming bullish trend and here you can place a buy trade.

 

Sell with Parabolic SAR dots above the price

 

 

When you see the PSAR dots above the price it signals an upcoming bearish trend and here you can place a sell trade.

 

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