Parabolic SAR Crude Oil Trading Technical Analysis & Parabolic SAR Trading Signals

Created by J. Welles Wilder.

The Parabolic SAR is used to set trailing crude oil price stops. This technical indicator is usually referred to as the "SAR" (stop-and-reversal) and it is used to follow crude oil price action closely.

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

Crude Oil Technical Analysis & How to Generate Trading Signals

This technical indicator provides excellent exit points.

Exit Crude Oil Trading Signal for Buy trades

Traders should close long positions when the crude oil price falls below the indicator.

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

Exit Oil Trading Signal for Sell trades

Traders should close short positions when the crude oil price rises above the indicator.

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

Exit Trading Signal for Buy & Sell trades