SAR index is also called parabola index or stop-loss steering operating point index, its full name is “Stop And Reverse”, abbreviated as SAR.
SAR parabolic index is often used in the technical analysis of gold trading. It is a simple and relatively accurate technical analysis tool for short and medium term foreign exchange gold trading.
From the full English name of SAR index, we know that it has two meanings.
It IS “Stop”, Stop NAMELY THE MEANING OF LOSS, Stop LOSS, THIS ASKS INVESTOR BEFORE TRADING FOREIGN EXCHANGE GOLD, WANT TO SET A Stop LOSS PRICE FIRST, IN ORDER TO REDUCE INVESTMENT RISK.
And this stop loss level is not always unchanged, it is with the volatility of the stop loss also to constantly adjust.
How to effectively control the potential risks without missing the opportunity to earn more income is the goal pursued by every investor.
But currency situation unpredictable, at different times and different direction and different, if the stop bit is set too high, can offer & sell retreated during the adjustment, and selling rate is open up a new uptrend, missed the opportunity to earn more profits, on the other hand, the stop bit set too low, just don’t control the risk.
Therefore, how to accurately set the stop loss is the purpose of various technical analysis theories and indicators, and SAR indicators have its unique function in this respect.
SAR target the second meaning of the English full name is “Reverse”, namely a reversal, the Reverse operation, which requires investors to invest in a foreign currency to set a stop before, when exchange rate reaches stop-loss price, investors should not only to early to buy part of unwinding, and in Reverse positions at the same time can be short, to seek to maximize the benefits of.
