Trailing Stop Loss XAUUSD Order MT4 Indicator
Developed by J. Welles Wilder & is used to set trailing gold trading price stops. This Trailing Stop Loss XAUUSD Order Indicator was originally created to analyze trending XAUUSD Markets. It is drawn as a xauusd chart overlay indicator, that is on the gold trading price chart itself.
This is a very accurate xauusd indicator for providing exit points and thus it is used to set trailing stops & is usually referred to as the 'SAR' (stop-and-reversal) - Trailing Stop Loss XAUUSD Order MT4 Indicator.
This Trailing Stop Loss XAUUSD Order MT4 Indicator is drawn above or below the gold trading price - it is drawn as a series of dots. The length of movement of the SAR will be determined by the scale of the gold trading price movement.
In an upwards xauusd trend the parabolic SAR will be below the gold trading price. As long as the up xauusd trend continues then SAR will continue being below the gold trading price - Trailing Stop Loss XAUUSD Order Indicator. When gold trading price move down & the parabolic SAR goes above gold trading price then the xauusd trend reverses to bearish.
This trailing stop loss technical indicator uses a parabolic calculation to plot the sequence of dots, This means that if the gold trading price stops heading up with the same acceleration, the parabolic will continue with the same acceleration thus at some point the gold trading price will hit the indicator if it slows down too much.
Interpretation
This Trailing Stop Loss XAUUSD Order MT4 Indicator provides excellent exit points. You should close long positions when the price falls below SAR & close short positions when the price rises above it.
If you are long, the Parabolic SAR - Trailing Stop Loss XAUUSD Order MT4 Indicator will move up every day, regardless of the direction the gold trading price is moving. The amount this xauusd indicator moves up depends on the amount that gold trading prices move.
The same technical analysis will also apply to a downwards xauusd trend, the parabolic SAR - Trailing Stop Loss XAUUSD Order MT4 Indicator will be above the gold trading price & it should remain above price until the bearish down xauusd trend reverses.
The xauusd chart below shows example of the Parabolic SAR in an up xauusd trend xauusd market, You can see how it trailed below the gold trading price (Bullish XAUUSD Market) until when it was hit and the xauusd trend reversed.
