PSAR: Why Dot Flips Mislead Traders

In this video, we explore the Parabolic SAR (PeeSar) indicator, clarifying its purpose and how to use it effectively in trading. We discuss common misconceptions and provide a structured approach to integrate PeeSar into your trading strategy.



- Understand the true function of PeeSar as a trend-following tool, not a prediction mechanism.

- Learn how PeeSar calculates its dots based on price extremes, adjusting as trends develop.

- Discover the significance of dot flips and why they should not be treated as buy/sell signals.

- Find out when PeeSar performs best and when it fails, particularly in choppy market conditions.

- Explore how professionals use PeeSar as a trend direction filter and a trailing stop reference.

- Gain insights into a structured approach for using PeeSar effectively in your trading.

- Avoid common pitfalls by aligning PeeSar with market structure rather than relying solely on dot flips.



Not financial advice. trading, Parabolic SAR, PeeSar, trend-following, trading strategy, risk management, technical analysis, trading indicators