WEBVTT 00:05.600 --> 00:11.500 OK the next technical indicator that I'm about to share with you in this course is the parabolic essay 00:11.510 --> 00:17.230 are essay are here stands for stop in reverse similar to the moving averages. 00:17.230 --> 00:23.020 This indicator can tell you whether a coin is in an uptrend or downtrend and it can give you an instant 00:23.020 --> 00:25.900 signal on whether the trend will reverse. 00:26.050 --> 00:31.780 This information is extremely helpful because it shows you exactly when to buy and when to sell your 00:31.780 --> 00:33.200 coin. 00:33.370 --> 00:40.270 The parabolic SARS composed of a series of dots either above or below the price during an uptrend. 00:40.340 --> 00:45.710 You'll find that the dots appear below the price and when there's a downtrend you'll find that the dots 00:45.710 --> 00:47.990 appear above the price. 00:47.990 --> 00:54.070 The first thing you'll need to keep in mind when using this indicator is don't use this indicator alone. 00:54.200 --> 00:59.260 You must use it with other technical indicators like the exponential moving average. 00:59.430 --> 01:04.410 That's because the parabolic SLR generates the best signals during a trending market. 01:04.580 --> 01:09.890 But when the market is consolidating it would likely generate a lot of false signals that can get you 01:09.890 --> 01:10.710 in trouble. 01:13.710 --> 01:17.070 Here's what the parabolic essay or indicator looks like. 01:17.130 --> 01:22.560 As you can see the parabolic essays are indicators a series of dots placed either above or below the 01:22.560 --> 01:26.040 price when the DOTs are below the price candles. 01:26.040 --> 01:32.750 This means we're in an uptrend and vice versa when the DOTs are above the candles we're in a downtrend. 01:32.830 --> 01:38.380 So how can we use this indicator to determine market trends. 01:38.390 --> 01:44.240 The nicest thing about the parabolic essay are is that it's very easy to use by looking at the dots 01:44.240 --> 01:47.030 you can instantly know the overall market trends. 01:47.790 --> 01:53.760 Basically when the DOTs are below the candles or price bars we're in an uptrend when the dots move from 01:53.760 --> 01:55.710 above to below the candles. 01:55.860 --> 01:57.340 It's a buy signal. 01:57.780 --> 02:03.450 And when the DOTs are above the candles we're in a downtrend when the dots move from below to above 02:03.450 --> 02:04.440 the candles. 02:04.440 --> 02:07.060 It's time to sell your coin. 02:07.110 --> 02:08.170 Simple right. 02:08.530 --> 02:10.110 Yeah I thought so. 02:10.170 --> 02:15.720 This is probably the easiest technical indicator to use but you should keep in mind that this indicator 02:15.720 --> 02:22.580 works much better in markets that are trending that have long rallies and downturns to avoid false signals 02:22.590 --> 02:27.270 you should always use this indicator with another trend following indicator. 02:27.270 --> 02:32.070 The best thing is that this indicator works perfectly well with the moving average crossover strategy 02:32.070 --> 02:39.390 you've learned in the previous lessons using the EMEA crossover in the parabolic SDR together will give 02:39.390 --> 02:42.650 you more confidence when analyzing the market trend. 02:42.660 --> 02:43.440 Why. 02:43.830 --> 02:50.670 Because if the EMEA crossover strategy shows an up turn signal the parabolic SDR should also show the 02:50.670 --> 02:52.600 same signal. 02:52.600 --> 02:57.430 So in summary we'll buy a coin when the dots move from above to below the candles. 02:57.430 --> 03:03.160 And when the moving averages show an up trend signal and on the other hand we'll consider selling our 03:03.160 --> 03:06.880 coin when the dots move from below to above the candles. 03:06.880 --> 03:11.880 And when the moving averages show a downtrend signal OK. 03:11.980 --> 03:16.750 Now let's learn how to set up the parabolic essay our indicator in your trading tool. 03:17.640 --> 03:21.010 Setting up the parabolic SSR indicator is very simple. 03:21.150 --> 03:29.180 You simply click on indicators click on the search box and type parabolic as you can see we have the 03:29.180 --> 03:31.220 parabolic s.a.a here. 03:31.580 --> 03:35.480 Simply click on it to add this indicator to the chart. 03:35.480 --> 03:39.720 Now click on the gear button will use the default configuration. 03:39.770 --> 03:48.490 You can click on the style tab to change the dots color will change the color to green. 03:48.520 --> 03:54.290 You can increase the size of the dots here then change the dot style to circles. 03:55.430 --> 04:02.030 After you do you'll see the screen here we have the dots above and below the price candle's which tell 04:02.030 --> 04:07.710 us the overall market trends in the next lecture will dive into many examples. 04:07.710 --> 04:11.020 So you can understand clearly how to use this indicator.