Parabolic SAR Bitcoin Trading Analysis and Parabolic SAR Bitcoin Trading Signals

Developed by J. Welles Wilder.

The Parabolic SAR is used to set trailing btcusd price stops. This btcusd indicator is usually referred to as the "SAR" (stop-and-reversal) and it is used to follow btcusd price action closely.

• In an Uptrend, the stop and reversal will trail below the btcusd trading market bitcoin price
• In a downward bitcoin trend, the stop and reversal will trail above the btcusd trading market bitcoin price

Bitcoin Trading Analysis and Generating Bitcoin Trading Signals

This btcusd indicator provides excellent exit points.

Exit Signal for Buy trades

Traders should close long positions when the btcusd price falls below the indicator.

If you are trading long i.e. The btcusd price is above the stop and reversal, the SAR will move up every day, regardless of the direction that btcusd price action is moving. The movement of the indicator depends on the number of pips that bitcoin prices move. When the SAR changes the direction then the btcusd trading market bitcoin trend also changes to down. This generates the exit signal for long trades.

Exit Signal for Sell trades

Traders should close short positions when the btcusd price rises above the indicator.

If you are trading short i.e. The btcusd price is below the stop and reversal, the SAR will move down every day, regardless of the direction that btcusd price action is moving. The movement of the indicator depends on the number of pips that bitcoin prices move. When the SAR changes the direction then the btcusd trading market bitcoin trend also changes to up. This generates the exit signal for short trades.

Exit Signal for Buy and Sell trades