Parabolic Sar 1j3k3p

Widhi Amalia Putri 1611440001

PARABOLIC • • • • • • •

Introduction Definition and concepts Theoritical review Mathematical Formula Simulation Analysis Graph Analysis Conclusion and suggestion

A stock is a security that gives its owner the right to a proportion of any profits that might be distributed (rather thab reinvested) by the firm that issues the stock and to the corresponding part of the firm in case it decides to close down and liquidate

Technical analysis is the study of prices to make better investment, with charts being the primary tool and also analyzing a security’s historical prices in an effort to determine probable future prices

A parabolic move can be highly profitable. There is potential to make more money in the stock market than has already been made.

Parabolic SAR (stop and reversal), is an indicator created by J.Welles Wilder. This indicator informs about potential trend changes in stock price or stock market index. It clearly shows the beginning and the end of a trend.

The way to read parabolic SAR is very simple, the point above means the down trend is down while the point below the candle means that the trend is increasing (Filbert, 2016)

Parabolic indicator are very useful in the condition of the driving trend of stock prices, but in a flat trend (no price movements occur) it becomes less useful because it is not easy to know whether such stocks can experience a significant trend in the future ( Hartanto, 2019).

when the catalyst component stumbles on a candlestick, a stop is automatically triggered to put an end to the trend in order to start a fresh one (Koonitz, 2019)

Assume that is in upward case. Let be the minimum logarithmic price from the beginning pf the trend through the end of t-th period (so there are times units) and be the maximum logarithmic price for the same periods. Define and then define for the t-th period, the acceleration factor,

ENTRY TRADING WITH PARABOLIC SAR

EXIT TRADING WITH PARABOLIC SAR

• The advantages of parabolic SAR is it an excellent system for traders who sell their bad position late and who are stubborn to keep it. • The disadvantages of parabolic SAR is when the point condition narrows with then there is an indication of reduced market power to continue the trend

it is recommended that we use the indicator for a weekly period unless the market shows an absence of volatility. Combine this indicator with another trend indicator such as MACD or ADX