Trailing Stop Loss Order MT5 Indicator
Developed by J. Welles Wilder, the Trailing Stop Loss Order Indicator is designed for setting trailing price stop loss orders, initially intended for assessing trending trading markets. This indicator appears overlaid on the stock chart itself.
This is a very accurate indicator for providing exit points and thus it's used to set trailing stop losses and is usually and generally referred to as 'SAR' (stop-and-reversal) - Trailing StopLoss Order MT5 Indicator.
This Trailing Stop Loss Order indicator for MT5 is plotted either above or below the current price, presenting itself as a sequence of dots. The degree of movement displayed by the SAR Indicator is directly dictated by the magnitude of the price movement itself.
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 StopLoss Order Indicator. When price move down & the parabolic SAR moves above price then the trend reverses to bearish.
The trailing stop loss indicator is based on a parabolic calculation to create a series of dots. This means that if the price ceases to rise at the same rate, the parabolic SAR indicator will keep moving at that rate. Consequently, the price will eventually meet the indicator if it decelerates too much.
Explanation
This Trailing Stop Loss Order MT5 Indicator offers outstanding exit signals. Specifically, long positions should be closed when the price falls below the SAR, and short positions should be closed out when the price moves above it.
For long positions, the Parabolic SAR trailing stop on MT5 moves up each day. It keeps going up no matter the price direction. The rise matches the price movement in stocks.
The same analysis fits a downtrend too. In a parabolic SAR trailing stop loss order on MT5, the indicator stays above price. It remains there until the bearish trend ends.
The chart shows Parabolic SAR in an uptrend. It follows below the price in a bull market. It flips when the trend changes.
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