Trailing Stop Loss Order MT5 Indicator
Created by J. Welles Wilder and is used to set trailing price stops. This Trailing Stop Loss Order Indicator was originally created to analyze trending Trading Markets. It is drawn as a stock chart overlay indicator, that's on the price chart itself.
This is a very accurate indicator for providing exit points and thus it is used to set trailing stops and is usually referred to as 'SAR' (stop-and-reversal) - Trailing Stop Loss Order MT5 Indicator.
This Trailing Stop Loss Order MT5 Indicator is drawn above or below the price - it's plotted as a series of dots. The scale of the movement of the SAR Indicator will be determined by scale of the price movement.
In an upward trend the parabolic SAR Indicator will be below the price. As long as the up trend continues then the SAR Indicator will continue to be below the price - Trailing Stop Loss Order Indicator. When price move down & the parabolic SAR goes above price then the trend reverses to bearish.
This trailing stop loss indicator uses a parabolic calculation to plot the series of dots, This means that if the price stops heading up with the same acceleration, the parabolic SAR Indicator shall continue with same acceleration thus at some level price will hit the indicator if it slows down too much.
Explanation
This Trailing Stop Loss Order MT5 Indicator provides excellent exit points. You should close long positions when price falls below the SAR & close short positions when price rises above it.
If you are long, Parabolic SAR - Trailing Stop Loss Order MT5 Indicator will move up every day, regardless of the direction the price is moving. The amount this indicator moves up depends on amount that stock trading prices move.
The same technical analysis also will apply to a downwards trend, parabolic SAR - Trailing Stop Loss Order MT5 Indicator will be above the price and it should remain above the price until the bearish down trend reverses.
The chart below shows an example of Parabolic SAR in an up trend stock market, You can check how it trailed below stock trading price (Bullish Market) until when it was hit and trend reversed.
