The Parabolic SAR Color with Alert is a technical indicator designed for use in the MetaTrader 4 (MT4) platform.
It is based on the Parabolic SAR (Stop and Reverse) indicator which is used to identify trends and potential trend reversals in price movements.
The Parabolic SAR Color with Alert indicator builds on the original Parabolic SAR by adding color coding and alert features to help traders identify trend changes more quickly and easily.
The indicator plots dots above or below price bars on a chart, with dots below indicating a bullish trend and dots above indicating a bearish trend.
When the dots change color, it signals a potential reversal in the trend direction. For example, if the dots switch from below the price bars to above the price bars, it could indicate a bearish reversal.
Conversely, if the dots switch from above to below the price bars, it could indicate a bullish reversal.
The Parabolic SAR Color with Alert is designed to plot a series of dots above or below the price bars on a chart.
When the dots are below the price bars, it indicates a bullish trend, while the dots above the price bars indicate a bearish trend. The dots change color when a potential reversal in the trend direction is detected.
The Parabolic SAR Color with Alert also includes support and resistance lines plotted on the chart. The blue line represents resistance, while the yellow line represents support.
- Price breaks above the blue dotted line
- A yellow dotted line appears below the price candle
- Place stop loss below the current Parabolic SAR support line
Also Read: RoboForex Review – Get $30 Welcome Bonus
- Price moves under the dotted yellow line.
- Above the price candle, a blue dotted line may be seen.
- Stop loss should be placed above the present Parabolic SAR resistance line.