Simplified Parabolic SAR Forex Indicator
The ParabolicM MetaTrader4 indicator is a simplified Parabolic SAR technical indicator. The indicator was first designed for studying trending markets.
The indicator is built on the price chart, shares some similarities with the Moving Average technical indicator, but differs due to the fact that the Parabolic SAR moves with higher acceleration and possibly alters its position in view of price.
If price crosses the ParabolicM lines, the indicator reacts by turning, with its values aligned on the other side of price. If we do not see a turn in the ParabolicM, it means the maximum or minimum price held in the previous period would mark the opening point.
A trend is said to come to an end, in its correction stage or flat when the ParabolicM indicator turns.
The ParabolicM offers credible leads towards exiting position(s). Exit buy positions when price dips below the ParabolicM line, while sell positions should be closed when price breaks above the ParabolicM line. The indicator tends to serve as the trailing stop line.
If price is aligned above the ParabolicM indicator, then a long position is in place and the ParabolicM line will move up not minding the direction that price takes. The scale of price movement is determined by the length of the ParabolicM line movement.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart pattern
Customization options: Variable (Step, Maximum), Colors, width & Style.
Time frames: Any