| Tickers in this article: CVX, ABBV, LC, AKS The Parabolic SAR is an indicator that combines a trend following (and reversal) strategy in conjunction with risk management. When the Parabolic SAR "dots" are below the price bars of a security, the price is moving up. When the dots are above the price bars, the price is moving down. When the Parabolic SAR dots flip from above to below, or below to above, some traders consider it a trade signal. In the stocks below the dots just moved below the price, signaling a buy. When the price drops back below the dots, the dots will move above the price, and it's time to sell.
Here are four stocks that recently flashed a Parabolic SAR buy signal. A broader outlook will help asses whether these buy signals should be taken advantage of, or ignored. See Introduction To The Parabolic SAR for the pros and cons of the indicator before using it in your own trading.
Refine Your Financial Vocabulary Sign up to receive our FREE Term of the Day newsletter. Gain a better understanding all things financial with technical and easy-to-understand explanations. Click here to begin developing your financial language with this daily newsletter. Disclosure - At the time of writing, the author did not own shares of any company mentioned in this article.
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