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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.
Typical Price of Moving Average represents a combination of a Simple Moving Average and Pivot Point Method. With the help of this indicator, an average price for a certain time cutting is determined. Resulted value is further matched with present price and moments for opening trades are defined. Signal for purchase is when Typical Price Moving Average crosses price chart from bottom to top. If moving average crosses price chart in the opposite direction, it is a signal for sale. Also Typical Price of Moving Average is able to serve as resistance or support level.
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