Parabolic SAR BTCUSD Analysis & Parabolic SAR Bitcoin Trade Signals
Developed by J. Welles Wilder.
The Parabolic SAR is used to set trailing bitcoin price stops. This btcusd indicator is usually referred to as the 'SAR' (stop-and-reversal) and it is used to follow bitcoin price action closely.
- In an Uptrend, the stop and reversal will trail below the btcusd market bitcoin price
- In a downward bitcoin trend, the stop and reversal will trail above the btcusd market bitcoin price
BTCUSD Analysis & Generating Signals
This btcusd technical indicator provides excellent exit points.
Exit BTCUSD Trade Signal for Buy trade transactions
Traders should close long positions when the bitcoin price falls below the indicator.
If you are trading long i.e. The bitcoin price is above the stop and reversal, the SAR will move up each day, regardless of direction that bitcoin price action is moving. Movement of the indicator depends on the number of pips that bitcoin prices move. When the SAR changes the direction then the btcusd market bitcoin trend also changes into downward. This generates the exit signal for long trade transactions.
Exit Bitcoin Signal for Sell trades
Traders should close short positions when the bitcoin price rises above the indicator.
If you are trading short i.e. The bitcoin price is below the stop and reversal, the SAR will move down every day, regardless of direction that bitcoin price action is moving. Movement of the indicator depends on the number of pips that bitcoin prices move. When the SAR changes the direction then the btcusd market bitcoin trend also changes into upward. This generates the exit signal for short trade transactions.
Exit Signal for Buy and Sell trade transactions