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Stop and Reverse (SAR) 

2022.10.28 MEXC
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Definition

Stop and Reverse (SAR) is also known as Parabolic SAR. It is also a trend indicator but with more precise instructions of reversal signals. Unlike EMA and BOLL, this indicator is involved with break-out trading (We will discuss it in detail in video).

How to use it in MEXC trading interface?

As we discussed before, we can find this indicator by clicking “Original” button and “f(x)”. then we will find a system of dots superimposed on or under the prices. To be more precise, if the trend is bullish, the dots would appear under the prices. If the trend is bearish, the dots would be on the prices. In this way, we can figure out the start of any kinds of trends. However, there are still some limitations for utilization of SAR.

Entry Point

  1. Bullish Trend

After the reverse, the first dot on prices, which is the furthest from the price, is the entry point for bullish trend.

  1. Bearish Trend

Like the situation in bullish trend, the first dot under prices after the reverse is the entry point in terms of bearish trend.

Advantages vs Disadvantage

  1. The reversal signal is more precise than other indicators, such as EMA and BOLL. It is because that the distance between dots and prices are increasingly convergent before the reverse.
  2. We can’t figure out the consolidation by SAR, but we can determine is by EMA and BOLL.
  3. We can’t determine the take-profit point, which can be shown by BOLL.

Beginner Benefits

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