– A Parabolic SAR always moves, regardless of whether the price of the asset changes. For example, if the trend was down and then became sideways, the indicator will still move down. In this situation, the market should refrain from transactions, because a Parabolic SAR gives a lot of false signals.
– The farther the indicator points are from the chart, the stronger the trend. The closer the points are to the chart, the more likely a price reversal is.
– The Parabolic SAR gives the most accurate signals when there is a clear up or down trend in the market.
