Because the SAR indicator is easy to understand, easy to operate, stable and reliable, the SAR indicator is also known as the “fool” indicator, and is widely used by investors, especially small and medium-sized retail investors.

General research criteria for SAR indicators

The general research criteria for SAR indicators include the following four aspects:

  1. When foreign currency numerators start to break up the SAR curve from below the SAR curve, in order to buy signals, it indicates that a round of price increase may unfold, and investors should buy long and quickly.
  2. When the exchange rate price continues to move upwards after breaking through the SAR curve and the SAR curve also moves upwards at the same time, it means that the upward trend of the exchange rate has been formed, and the SAR curve constitutes a strong support for the stock price. Investors should firmly hold positions or increase on dips. Buy long.
  3. When the foreign exchange market price starts to break down the SAR curve from the top of the SAR curve, in order to sell the signal, it indicates that a round of decline in the exchange rate may unfold. Investors should sell short and quickly.
  4. When the foreign exchange market price breaks down the SAR curve and continues to move downward while the SAR curve also moves downward at the same time, indicating that the downward trend of the exchange rate has been formed, and the SAR curve poses a tremendous pressure on the exchange rate. Investors should firmly hold the currency and wait or see Lighten up.

The role of SAR indicators

Compared with other technical indicators, the SAR indicator provides a considerable help for the average investor in the market research and judgment, specifically in the following three aspects:

  1. Hold a watch
    When the marrying of a currency is suppressed below it by the SAR indicator and has been moving downwards, investors can watch the currency all the way until the exchange rate breaks through the pressure of the SAR indicator and sends a clear buy signal before considering whether to buy Go long.
  2. Hold up the currency
    When a currency marries above the SAR indicator and has been moving upwards relying on the SAR indicator, investors can hold the currency all the way up until the exchange rate breaks through the support of the SAR indicator and sends a clear sell signal before considering whether to Sell ​​short.
  3. Clear stop loss
    The SAR indicator has a very clear stop loss function, and its stop loss is divided into buy stop loss and sell stop loss. Selling stop loss means that when the SAR sends a clear buy signal, regardless of the price at which the investor sold the currency before, whether the investor is losing money, the investor should buy the currency in time and hold the currency up. Buy Stop means that when the SAR indicator sends a clear sell signal, regardless of the price at which investors bought long and long votes, whether investors make a profit, investors should sell and close the position in time.

Advantages of SAR indicator

The SAR indicator has the following advantages:

  1. The operation is simple, the trading point is clear, and the operation can be performed when the trading signal appears. It is especially suitable for small and medium investors with short time to market, insufficient investment experience, and lack of trading skills. 2. The “Bull Master” that is suitable for continuous lifting will not be easily shaken by the main force and washed.
  2. A “bear market” that is suitable for continuous declines will not be deceived by the rebound on the way.
  3. Suitable for medium and short-term band operation.
  4. Long-term use of the SAR indicator can not buy the lowest price or sell the highest price, but it can avoid the danger of long-term entanglement, and at the same time can avoid missing the trend.