How to use SAR to spot reversal signals, 6th indicator challenge 🤔
What is SAR indicator?
SAR indicator stand for "stop and reversal system".
SAR is a technical indicator used to determine the direction and potential reversals of a price trend. It is developed by J. Welles Wilder Jr., the creator of the relative strength index (RSI).
(Oic
!)
SAR indicator stand for "stop and reversal system".
SAR is a technical indicator used to determine the direction and potential reversals of a price trend. It is developed by J. Welles Wilder Jr., the creator of the relative strength index (RSI).
(Oic
Firstly, if u have no idea how to use SAR & want to know more, u may wanna check out @Meta Moo post on SAR
:
I'm just going to move to the practical usage of SAR
using $SPDR S&P 500 ETF (SPY.US)$. U gotta keep up with my pace if u don't want to get sallow by the bearish 🐻 market
in 2022. (SAR is also new to me
)
1. Using SAR to spot direction and potential reversals
P1:
Select SAR indicator which should be there by default
.
P1:
Select SAR indicator which should be there by default
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656916504855-random9117-101642595-android-compress.jpg/bigmoo)
P2.1:
In P2.1, u will see the circled dot along the red dotted line, a weird colour which is slightly light green / White dot.
In P2.1, u will see the circled dot along the red dotted line, a weird colour which is slightly light green / White dot.
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656916505163-random4560-101642595-android-compress.jpg/bigmoo)
In P2.1, the start of the slightly light green / White dot along the red dotted line show a potential reversals & a downtrend may happen. A few days later as shown in P2.1, it's indeed a downtrend
.
P2.2:
Vi-versa![]()
Vi-versa
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656918319532-random6553-101642595-android-compress.jpg/bigmoo)
P2.2 shows the light green / White dot along the green dotted line = a potential reversals & a uptrend may happen.
2. Using SAR with MACD
P3.1:
P3.1:
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656918319775-random580-101642595-android-compress.jpg/bigmoo)
As u can see in P3.1,
light green / White dot along the red dotted line + MACD orange line below blue line = A potential reversals & a downtrend may happen.
light green / White dot along the red dotted line + MACD orange line below blue line = A potential reversals & a downtrend may happen.
P3.2:
Vi-versa![]()
Vi-versa
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656918320058-random3294-101642595-android-compress.jpg/bigmoo)
In P3.2,
Light green / White dot along the green dotted line + MACD orange line above blue line = A potential reversals & a uptrend may happen.
Light green / White dot along the green dotted line + MACD orange line above blue line = A potential reversals & a uptrend may happen.
3. Using SAR with RSI
P4.1:
P4.1:
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656918320369-random2312-101642595-android-compress.jpg/bigmoo)
Light green / White dot along the red dotted line + RSI < 50 = A potential reversals & a downtrend may happen.
P4.2:
Vi-versa![]()
Vi-versa
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656918320637-random2294-101642595-android-compress.jpg/bigmoo)
Light green / White dot along the green dotted line + RSI > 50 = A potential reversals & a uptrend may happen.
Why 50?
Because it is the medium (50%)
.
Because it is the medium (50%)
Oh
, by the way... @Meta Moo used 3 RSI lines as a patterns observation & it's quite interesting. U may wanna check it out ![]()
:
Meta Moo :Part Two: Find the bull & bear with dots & lines
Meta Moo :Part Two: Find the bull & bear with dots & lines
4. Using SAR with RSI+MACD
Last but not least,
P5.1:
Last but not least,
P5.1:
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656918919152-random6443-101642595-android-compress.jpg/bigmoo)
Lastest chart data of $SPDR S&P 500 ETF (SPY.US)$ on 4/7/2022 in P5s,
Light green / White dot along the green dotted line + RSI < 50 = huh
, ahlehleh?
Light green / White dot along the green dotted line + MACD orange line above blue line = A potential reversals & a uptrend may happen.
Wth 🤦♂️ is happening
?
Light green / White dot along the green dotted line + RSI < 50 = huh
Light green / White dot along the green dotted line + MACD orange line above blue line = A potential reversals & a uptrend may happen.
Wth 🤦♂️ is happening
Let's further look at P5.2 below:
P5.2:
P5.2:
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656919780893-random6920-101642595-android-compress.jpg/bigmoo)
Light green / White dot along the green dotted line + RSI < 50 = huh
...
?
Light green / White dot along the green dotted line + MACD orange line above blue line = A potential reversals & a uptrend may happen.
So, my reasons & conclusion is:
It may be a bull trap = short-term bullish.
1. RSI < 50
2. MACD is still in the negative values zone although MACD orange line above blue line
Light green / White dot along the green dotted line + MACD orange line above blue line = A potential reversals & a uptrend may happen.
So, my reasons & conclusion is:
It may be a bull trap = short-term bullish.
1. RSI < 50
2. MACD is still in the negative values zone although MACD orange line above blue line
I'm NOT trying to...
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656919780952-random6130-101642595-android-org.jpg/bigmoo)
...you. I'm just stating out the matter of facts & my point of views, that's all
= Peace
.
5. Summary on SAR
![How to use SAR to spot reversal signals, 6th indicator challenge 🤔](https://ussnsimg.moomoo.com/1656920308091-random5088-101642595-android-org.png/bigmoo)
NOTE: ALL INDICATORS ARE JUST ONLY A GUIDELINE FOR A TREND PATTERNS & U SHOULD NOT BE OVERLY DEPENDENT ON IT. IT'S USUALLY A BETTER USAGE FOR SHORT-TERM TRADERS / SHORT-TERM INVESTORS = LONG-TERM INVESTORS SELDOM USE INDICATORS.
Extra informations:
Milk The Cow :Tech Analysis To Identify Trend Using MACD 📈 Day 2 (AMC As Example)
Milk The Cow :Tech Analysis To Identify Trend Using MACD 📈 Day 2 (AMC As Example)
DYODD before investing![]()
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Milk The Cow OP :![](https://emoticon.futunn.com/rich_big_face3_mm/89.png)
JustSurface : very nice write up
alsmoov : perfect! Learning from you!
Milk The Cow OP JustSurface : ty![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
Milk The Cow OP alsmoov : ty![undefined [undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36)
Jamesim :![+1 👍](https://static.moomoo.com/nnq/emoji/static/image/img-apple-64/1f44d.png)