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Nifty Intraday Chart

Nifty intraday chart is used to In this article of nifty intraday chart, we see how to trade nifty futures and nifty options using Parabolic SAR technique.

* Parabolic SAR, Stop And Reverse study was developed by welles wilder in the year 1978
* Wilder initially called this system as parabolic time/price system in his book, new concepts in technical trading systems.
* This technique works best during high volatile markets than that in consolidated markets.
* SAR follows the trend and at some point of time, it generates the signals reversing the trade.
* Two factors, extreme point and acceleration factor are included in this concept.
* Extreme factor is the highest high of the present uptrend in case of rising SAR
* It is the lowest low of the current low trend in case of falling SAR on nifty live chart
* Acceleration factor starts from .02 and extends to a maximum value of .20 irrespective of uptrend extension.
* Each time the extreme factor makes a high, acceleration factor moves up by .02 in case of rising SAR
* Note that, in falling SAR too acceleration makes 0.02 high but with new low of extreme point.
* Parabolic SAR also sets the trailing stoplosses on nifty intraday chart for safe trading.
* This study deals with price as well as time too which helps in exiting from the stock in case of less volatile markets.
* In the parabolic stop and reverse technique, buy position to be taken on nifty intraday chart if the indicator is below the price.
* On nifty chart, Sell trade to initiate if the indicator is above the price line.
* Over a period of time, buy converts to sell and vice versa on nifty future chart if the movement of the price is less.

Posted By: Rajeev Srivastav                 Posted on: 2016-11-05 12:05:01                 Updated on: 2016-11-05 12:05:01