Forex encyclopedia

Apart from Japan, the countries with the second economic power (Hong Kong, Singapore, Australia, South Korea) are also active in the transaction. * At certain periods, liquidity can be very low and visible for a very small price movement (no change in the relatively long time). A small price movemen allows breakout level of previous trends that occurred in the American market to form, so there is a phase of consolidation.

Parabolic SAR is the technical indicator developed by Welles Wilder for analyzing trend movements. The first time it was announced in a famous book “ New Concepts in Technical Trading Systems” published in 1976. SAR stands for as “stop and reverse”. Parabolic SAR is one of a few indicators that signalize about closing of positions. In many respects Parabolic is similar to a moving average with the only difference that SAR can change position against price. Under ascending tendency, the indicator is drawn under prices (candles, bars), under descending tendency it is put above prices. When price crosses Parabolic line, reversal of the indicator takes place.