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Re: DITRstocks post# 1421

Friday, 02/22/2013 2:31:38 PM

Friday, February 22, 2013 2:31:38 PM

Post# of 14578
Parabolic SAR looks like she isabout to flip into positive territory. That is a very bullish sign that we've found a bottom when it does. Developed by Welles Wilder, the Parabolic SAR refers to a price-and-time-based trading system. Wilder called this the "Parabolic Time/Price System." SAR stands for "stop and reverse," which is the actual indicator used in the system. SAR trails price as the trend extends over time. The indicator is below prices when prices are rising and above prices when prices are falling. In this regard, the indicator stops and reverses when the price trend reverses and breaks above or below the indicator.

Wilder introduced the Parabolic Time/Price System in his 1978 book, New Concepts in Technical Trading Systems. This book also includes RSI, Average True Range (ATR), and the Directional Movement Concept (ADX). Despite being developed before the computer age, Wilder's indicators have stood the test of time and remain extremely popular.

http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:parabolic_sar

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