Introduction

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.

Screenshot from Binance portal

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

OBSERVATION:

The cover image was designed by the author: @lupafilotaxia, incorporating image: Screenshot from Binance portal

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Technical functionality of the Parabolic Sar indicator

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