Parabolic SAR Gold Technical Analysis and Parabolic SAR XAUUSD Signals

Developed by J. Welles Wilder.

The Parabolic SAR is used to set trailing gold trading price stops. This xauusd indicator is usually referred to as the 'SAR' (stop-and-reversal) and it is used to follow gold price action closely.

• In an Uptrend, the stop and reversal will trail below the gold market price
• In a downwards xauusd trend, the stop and reversal will trail above the gold market price

Gold Technical Analysis & How to Generate Trading Signals

This xauusd technical indicator provides excellent exit points.

Exit XAUUSD Trading Signal for Buy trades

Traders should close long trade positions when the price falls below the technical indicator.

If you are trading long i.e. The gold trading price is above the stop and reversal, the SAR will move up every day, regardless of the direction that gold price action is moving. The movement of the indicator depends on the number of pips that gold trading prices move. When the SAR changes the direction then the xauusd market xauusd trend also changes to down. This generates the exit signal for long trades.

Exit Gold Trading Signal for Sell trades

Traders should close short trades when the price rises above the technical indicator.

If you are trading short i.e. The gold trading price is below the stop and reversal, the SAR will move down every day, regardless of the direction that gold price action is moving. The movement of the indicator depends on the number of pips that gold trading prices move. When the SAR changes the direction then the xauusd market xauusd trend also changes to up. This generates the exit signal for short trades.

Exit Trading Signal for Buy & Sell trades