I get so tired of googling and finding nothing more than copy/paste info.
Can anyone explain in details but in simple to understand way of trading with a PSAR please. I just started learning about it.
Thanks
As developed by its creator, J. Welles Wilder, Jr., the PSAR is an indicator which calls trend-reversals, and this call (according to Wilder’s method) tells you to reverse your position. Whenever the price touches the PSAR, you stop and reverse position. That’s why it’s called the parabolic [B]stop and reverse[/B] indicator.
Basically, if you are long one lot, when the price falls to, and touches, the PSAR, you would go short two lots, effectively closing your long position and opening a one-lot short position. Then, when the price rises to, and touches, the PSAR, you would reverse again by going long two lots.
I’m assuming that you have already studied this: Parabolic SAR: Forex Parabolic Stop and Reversal Chart Indicator
If not, go back and do it now; that’s where you should have started.
Here’s a previous post which might have more detail that you can use: 301 Moved Permanently
Clint