In the cryptocurrency market, determining when an uptrend, or downtrend, has ended is one of the situations that most concerns people who trade by buying/selling.
Now, there are technical tools that serve to give us an orientation of the direction and trend changes, among these one of those that I have been particularly testing is the Parabolic Sar indicator, since it is one of those technical tools that can be used to deduce the probable behavior of the trend.
I would like to emphasize that, based on the bibliographic references consulted, it is important to consider some important elements of the Parabolic Sar indicator, which reflects a set of price data with statistical projection, which allows us to know the market trend.
On the other hand, the PSAR allows to determine when a trend will end, or when it is closer to ending, and at a graphic level the Parabolic Sar indicator is a series of points that appear above or below the price, which serve as a guide to make entry or exit decisions at a certain time and market action.
In the next post, I will share some ways to use the Parabolic Sar indicator at certain times of price action.
SOURCES CONSULTED
➊ Casey Murphy Introduction to the Parabolic SAR. Link