Mooers' Strategies: How to use SAR for accurate analysis

Hi, mooers!
Good to see you again! Welcome back to "Mooers' Strategies". In the previous session, we introduced the SAR indicator. Did you find this information helpful? If you did, congratulations! You've made it to the next stage of the trading journey.

Today, we'd like to show you how mooers use the SAR indicator to trade. Let's first review some basics of SAR.
Get to know SAR indicator and post your learning results!
Part One: Can dots reveal a bullish/bearish trend?
Part Two: Find the bull & bear with dots & lines

To better analyze market trends, it helps to equip ourselves with financial knowledge and technical tools. Are you wondering how others use the SAR indicator? Let's take a look.

1. Why is SAR important to trading?
SAR can reveal the current price trend, potential entry or exit signals, and trailing stops. More specifically, it provides a stop-loss point, which is a method to limit the investment loss and lock in profits on an existing position.
@Jamesim summarized the advantages of SAR. It can help you make long and short judgments, identify the conversion point easily, and grasp the market within the band when the trend is clear. Besides, it is helpful to stop losses and take profits.
Tap to view full post>>

2. When to use SAR
One thing that you need to bear in mind is that you should be cautious when using the SAR indicator. As @doctorpot1 said, "SAR produce good results in trending environment, but it creates many false signals and losing trades in a volatile and side way market. It is best to use it to trade with the trend rather than against the trend. In a bullish market, go long only. In a bearish market, go short only".
Tap to view full post>>

3. How to use SAR effectively
We can never go all in on one single indicator. For traders, it can be helpful to use technical analysis as part of the strategy. It includes studying various trading indicators. @bullrider_21 shared two ways of combining indicators to achieve a more accurate analysis.
Path 1: Combine SAR with ADX
Path 2: Combine SAR with RSI

Tap to view full post>>

@cola1010 posted some rules for using the parabolic SAR and described how to use it on moomoo. Let's take the Apple stock as an example.
Step 1: Click the icon beside the timeframe icons
Step 2: Choose the indicators
Step 3: Add the indicator
Step 4: Select SAR parabolic and reverse in the indicator selection
Step 5: Start analyzing

Tap to view full post>>

@FirstStrike Veteran shared a trading analysis with multiple indicators: SAR, RSI, 8 Ema, and SQJ.
"Also I want to say that this doesn't always work but any time your day trading you need to watch the chart and be ready to do whatever needs done".

Tap to view full post>>

Do you find the SAR indicator handy? Join us for a wonderful trading journey! #TA Challenge: How to use the SAR to spot reversal signals Do you have any other ideas in mind? Feel free to comment below and let us know. See you next time!

Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. The testimonial provided herein may not represent other customers' experience, and there is no guarantee of future performance or success. Tap for more details