Parabolic SAR is a Forex indicator developed for analyzing trend markets. In its essence, this best indicator is similar to moving average. The only difference is that Parabolic SAR best forex trading indicator moves with a slight acceleration and can change its position relative to price. This indicator is situated below prices in case of an ascending trend and vice versa.

The value of Parabolic SAR indicator increases in direct ratio to increase of the current bar price relative to the previous price on the bullish market and decreases on the bearish market. In this case acceleration factor doubles leading to convergence of Parabolic SAR and price chart. Thereby, the faster the price rises or reduces, the faster the forex indicator approaches to this price.

Parabolic SAR

Parabolic SAR is a standard indicator of the 4 trading terminal.

Parabolic SAR Trading Signals

If the price chart crosses over best forex trading indicator lines, it “reverses” and the following values will be situated on the opposite side of price. In this case the starting point will be maximal or minimal prices for the previous period. Parabolic SAR best indicator reverse is a signal about ending of the trend or its reverse.

Parabolic SAR is a good forex indicator and it is capable of finding entry and exit points. It is better to close buying positions when price falls below the line of the forex technical indicator, and it is better to close selling positions when price rises above the Parabolic SAR indicator line.

This forex trading indicator can also be used as a trailing stop line.

In a buying position is opened (price is above the Parabolic SAR line), the indicator line will move upwards irrespective of price movement.
 

Parabolic SAR Calculation Formula

For Buy Position:

SAR (i) = ACCELERATION * (HIGH (i — 1) — SAR (i — 1)) + SAR (i — 1).

For Short Position:

SAR (i) = ACCELERATION * (LOW (i — 1) — SAR (i — 1)) — SAR (i — 1),

- SAR (i — 1) — the value of best indicator on the previous bar;
 - ACCELERATION — acceleration factor;
 - HIGH (i — 1) — maximal price for the previous period;
 - LOW (i — 1) — minimal price for the previous period.
 

Moving Average of Oscillator (OsMA) Indicator

Moving Average of Oscillator or simply OsMA is a technical Forex indicator that shows general difference between Oscillator and its smoothing. In this concrete case the basic MACD line is an Oscillator, and the signal line of the same trading indicator is used as smoothing.

Moving Average of Oscillator (OsMA) is a good forex indicator for the 4 trading terminal.

OsMA Trading Signals

Two OsMa Oscillator signals are used to trade on the foreign exchange market:

•    Change of tendencies – growth becomes fall and vice versa;
•    OsMa divergence with the price chart.
 

OsMA Calculation Formula

OSMA = MACD-SIGNAL,
- MACD – showings of the MACD main line;
 - SIGNAL – the MACD signal line.

Click to read about OsMA Divergence Indicator