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3 New Parabolic SAR Buy Signals In A Market Selloff

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3 New Parabolic SAR Buy Signals In A Market Selloff

One of the more unique technical analysis metrics used to determine buy and sell signals is Parabolic SAR. Developed by Welles Wilder in 1978, the “SAR” stands for “stop and reverse.”

The calculation of SAR is relatively complex and comes with a number of contingencies. However, the basic idea is that a buy signal is generated when the Parabolic SAR dot shifts from above the share price to below the share price, and a sell signal occurs when the Parabolic SAR shifts from below the share price to above it.

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Although the S&P 500 has started 2016 on shaky ground, here are three Parabolic SAR buy signals happening this week.

After a brief one-day flip to “sell,” Teck Resources Ltd (USA) (NYSE: TCK) opened Friday’s session with a more than 20 percent gain and triggered a brand new Parabolic SAR buy signal.

Spirit Realty Capital, Inc (New) (NYSE: SRC) briefly pushed to new six-month highs on Friday, enough to trigger a fresh Parabolic SAR buy signal in its chart.

Las Vegas Sands Corp. (NYSE: LVS) jumped more than 8.0 percent on Friday, and traders are hoping for a repeat of the surge that followed the stock’s January Parabolic SAR buy signal.

Disclosure: The author holds no position in the stocks mentioned.

Image Credit: Public Domain

Posted-In: Parabolic SAR Welles WilderEducation Technicals Top Stories Markets Trading Ideas General Best of Benzinga

 

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