• Home
  • Courses
    • NSE Academy Certified Courses
      • Capital Market Analytics
      • Certified Program on Intraday Trading Strategies
      • Advanced Technical Analysis
      • Advanced Options
      • Advanced Algo Trading
      • Advanced Fundamental Analysis
      • Advanced Risk Management
      • Algorithmic Trading & Computational Finance using Python & R
    • TC Courses
      • FSM 1.0
      • FSM 2.0
      • Mentorship Program
  • Learning Center
    • Financial Education
    • IPO Issues
    • Fundamental Analysis
    • Technical Corner
    • Options Corner
    • Risk Management
  • Screener
  • Emerging Leaders
  • Terminal
  • Subscribe
Have any question?
7718989954
info@tradingcampus.in
Login
Trading CampusTrading Campus
  • Home
  • Courses
    • NSE Academy Certified Courses
      • Capital Market Analytics
      • Certified Program on Intraday Trading Strategies
      • Advanced Technical Analysis
      • Advanced Options
      • Advanced Algo Trading
      • Advanced Fundamental Analysis
      • Advanced Risk Management
      • Algorithmic Trading & Computational Finance using Python & R
    • TC Courses
      • FSM 1.0
      • FSM 2.0
      • Mentorship Program
  • Learning Center
    • Financial Education
    • IPO Issues
    • Fundamental Analysis
    • Technical Corner
    • Options Corner
    • Risk Management
  • Screener
  • Emerging Leaders
  • Terminal
  • Subscribe

Basics of Python

  • Home
  • Blog
  • Basics of Python
  • Parabolic SAR Indicator

Parabolic SAR Indicator

  • Posted by Abhilash Bandari
  • Date December 3, 2020
  • Parabolic SAR is a technical indicator used to analyse the stock market. It is used by traders to identify the trend direction as well as trend reversal points.
  • SAR stands for stop and reverse, used to identify the entry and exit points. Parabolic SAR indicator appears on the chart in the form of circles either above or below the price, based on the trend direction. The dots appear below the price if there is an upward trend and above the price if there is a downward trend.
  • A change in the position of dots indicates a trend reversal, i.e., if the dots are above the price, when they appear downwards, it might indicate a trend reversal from a bearish rally to a bullish rally and the price might rise further.
  •  Similarly, if the dots appear below the price and when they appear upwards, it indicates a trend reversal from a bullish rally to a bearish rally and the price might continue to fall.

This is the 1 day chart of Maruti Suzuki India around Jan-Aug, 2020

 

  • The dots appear closer at the start of the trend. As the trend accelerates, the gap between the dots increases because the dots need to catch up with the accelerating price level and the SAR appears to move faster as the trend develops.
  • Traders can enter the trade using the SAR indicator. If the dots appear above the price level and the gap between the dots is increasing, it indicates a strong bearish rally and traders can initiate their short positions.
  • Similarly, if the dots appear below the price level and the gap between the dots is increasing, it indicates a strong bullish rally and traders can initiate their long positions.
  • SAR indicator is also used to set the stop loss order. Traders can place the stop loss order and move it as the SAR indicator moves.
  • The main disadvantage of this indicator is it might lead to false results when the price moves in the horizontal direction, i.e., if the price moves sideways, the SAR indicator keeps fluctuating above and below the price level and the traders might incur losses.
  • Hence, SAR indicator must be used along with a few other indicators, like ADX indicator, to better analyse the market.
  • Share:
author avatar
Abhilash Bandari

Previous post

Volume Weighted Average Price Indicator
December 3, 2020

Next post

Bollinger Band Width Indicator
December 5, 2020

You may also like

Arithmetic Operators
12 May, 2021

There are around 7 arithmetic operators available in python. These are called as binary operators because they act on two operators. a = 13, b = 5 Operator Meaning Example …

Operators in Python
11 May, 2021

An operator is a symbol that performs an operation. Some examples of operations are addition, subtraction, multiplication etc. a + b is an operation where a,b are operands and ‘+’ …

Bear Call Spread
23 December, 2020

Bear call spread is an option strategy used by traders to cap their maximum loss. At first, a trader is bearish with the downside capped, so he initiates a sell …

emerging leader

  • Basics of Python
  • Emerging Leaders
  • Financial Education
  • Fundamental Analysis
  • Investment Ideas
  • IPO Issues
  • Nifty 50
  • Options Corner
  • Risk Management
  • Technical Corner
  • Uncategorized

Past Batches

December 2018 – Completed

March 2019 – Completed

July 2019 – Completed

November 2019 – Completed

January  2020 – Running

Get Updates

Subscribe to our mailing list and get learning stuff and updates to your email inbox
Loading

Accordions

Company Summary

Bajaj Electricals Limited is engaged in engineering and projects; power distribution, illumination and consumer durables businesses.

It has a range of domestic and kitchen appliances comprising water heaters, room heaters, coolers, irons, mixers, induction cookers, toasters, kettles, microwave, rice cookers, gas stoves, non-electrical kitchen aids and pressure cookers.

It offers ceiling, table, pedestal, wall, fresh air and industrial fans, and lighting solutions, such as light sources, light emitting diode-based lighting products, domestic luminaires, torches and lanterns.

Key Highlights of Company Business

Segments and Products

The Company's business segments consist of

  1. Lighting;
  2. Consumer Durables;
  3. Engineering & Projects,

The Lighting segment includes lamps, tubes and luminaries.

The Consumer Durables segment includes appliances and fans.

The Engineering & Projects segment includes transmission line towers, telecommunications towers, highmast, poles and special projects.

The Others segment includes diecasting and wind energy.

Financial Performance

Financial Ratios

Trading Campus

7718989954

info@tradingcampus.in

Company

  • About Us
  • Gallery
  • Team
  • Contact Us
  • Careers

Courses

  • Technical Analysis
  • Algo Trading
  • Options
  • Fundamental Analysis
  • Risk Management
  • Algo Trading using Python

Support

  • Learning Center
  • Forum
  • Login
  • Videos

Education WordPress Theme by ThimPress. Powered by WordPress.

Copyright © 2018 Trading Campus. All rights reserved.