Parabolic SAR

Parabolic SAR Parabolic

Stop and Release was developed by J Welles Wilder. It is made up of a series of evolving points called Stop and Reverse (SAR) points. The position is reversed when the protective stop is triggered.Parabolic SAR is more popular for setting stops than for establishing direction or trend.Parabolic SAR is base on the following rule: to shift the levels of closing prices only in direction of opened position. If there is a long position opened before, it is possible to increase the level of closing prices, but not to decrease it. If the short position is opened, it is possible to decrease the level of closing prices. Once a Parabolic SAR is reached, the current position is exited and a new position in the opposite direction is taken.Signal to buy is given when the upper SAR crosses the price line.Signal to sell is give when the lower SAR crosses the price line.

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Relative strength Index

Relative strength Index

Relative Strength Index (RSI) is a popular momentum oscillator developed by J. Welles Wilder.The RSI indicator ranges in value from 0 to 100, with numbers above 70 indicating overbought conditions and fewer than 30 indicating oversold (Go long when RSI falls below the 30 level and rises back above it) or on a bullish divergence where the first trough is below 30.If the RSI rises above 30, it is considered bullish, while if the RSI falls below 70, it is considered bearish (Go short when RSI rises above the 70 level and falls back below it or on a bearish divergence where the first peak is above 70).

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Moving Average of Oscillator Moving Averages Oscillator

Moving Average of Oscillator Moving Averages Oscillator

displays the difference between the oscillator and the smoothing of oscillator. In this case, the basic line of MACD is used as an oscillator, and the signal line of MACD is used for smoothing.The signal for buying is given, when OSMA stops falling and begins growing. The signal for sale is given, when OSMA ceases growing and begins falling. The divergence of the price and OSMA is a good signal.

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