Introduction

• The strategy we will be implementing today is Parabolic Sar
• Wilder introduced the parabolic time/price system in his 1978 book New Concepts in Technical Trading Systems. The trend-following indicator helps traders spot uptrends and downtrends. You can step on and off along the dots on the display.
• The original name of the indicator was Parabolic Time/Price System. SAR is an abbreviation for “stop and reverse”. As the name suggests, the indicator finds potential reversals in trending prices
• The indicator has three main functions
  • Showing current price trends
  • Providing potential entry
  • Giving exit signals.

Parabolic Sar Positive Crossover

• Parabolic sar Positive crossover is a bullish crossover
• A Buy call is triggered in such a setup the  when price closes above the dots
• Let’s look at an example in the chart below (Cipla on a daily time frame)

A buy signal is generated when the prices closes above the dots Now that you know what a Parabolic sar Positive crossover is, let’s look at a few opportunities in the LIVE market:

Parabolic Sar Negative Crossover

• Parabolic sar  Positive crossover is a negative crossover
• ·A Sell call is triggered in such a setup the when price closes below the dots
• Let’s look at an example in the chart below (Powergrid  on a daily time frame)

A sell signal is generated when the prices closes below the dots Now that you know what a Parabolic sar Negative crossover is, let’s look at a few opportunities in the LIVE market:

Awesome, but what’s my takeaway?

• ITC, IndusInd bank, HDFC bank, Coal india & SBI have given a buy call on a daily time frame (implementing Parabolic sar Positive crossover )
• Powergrid, RIL JSW steel, Cipla & Apollo hospital has given a sell call on a daily time frame (implementing Parabolic sar  Negative Crossover)