3 Parabolic SAR Buy Signals In A Weak Market

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 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.
 

Related Link: Gabelli & Co's Top Technology, Media And Telecom Stocks For 2016

 

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


After a very brief pullback, Parabolic SAR is indicating that Public Storage PSA is once again headed in the right direction.


Lockheed Martin Corporation LMT has been volatile of late, but the most recent Parabolic SAR dot indicates an upside bias looking forward.


Finally, a big move by Time Warner Inc TWX created a Parabolic SAR buy signal in its chart, and shareholders are hoping this signal is the one that will lead to a longer-term uptrend for the stock.

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