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Furthermore, I encourage all traders to approach their chosen indicators with a similar approach. Therefore, if SAR is further from price, a reversal in the indicator is less likely. This works by increasing the distance between SAR and price. You may wonder why you would ever need to fiddle with the acceleration factor. Extreme point EP is the highest high of the prevailing uptrend. For example, Wilder's Average Directional Index can be used to estimate the strength of the trend before considering signals. You can see that it is a fairly large stop which would require a smaller position size. SAR is more sensitive in chart 7 addison lee work from home there are more reversals. There is, of course, no correct answer as to which are best. Which is why we use this indicator and two moving averages to determine an entry point. This lower Maximum Step decreases the sensitivity of the indicator and produces fewer reversals.




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