Parabolic SAR With Forex Trading Stops
You are able to use the Parabolic SAR to place stops, especially should you use the trailing stop. You simply set your stop at the point indicated by the present dot. When the trend is strong, this will be a long way from the present price so your stop will not easily be triggered. As the trend slows, the dots approach the current cost, tightening up the gap. When a forex trading reversal is indicated the stop will be triggered by just a small movement. This isn’t a tool for scalpers. It is not so useful for short term fluctuations in a choppy market. The indicator is most reliable over real trends lasting several hours or days.
