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® “Home-Study Course” Study Manual Page 199

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WEEK THREE:

STUDY SESSION #4

REVERSALS (SARS) & RE-ENTRY PATTERNS

Stop & Reversal (“SAR”) Patterns

The meaning of “Stop & Reverse”, or “SAR” is that you change the
direction of your trade immediately without going to a neutral or flat
position. This needs to be done quickly, deliberately and without
hesitation. You should know that a potential “SAR” is developing and
be ready to execute it. This is an “Advanced Technique”.

“SARs” create a lot of trading. When you are trying “SARs” for the
first time you will be surprised at how many extra trades were done as
compared to not using “SARs”. You will also be surprised at how much
more in commission you have to pay. “SARs” are not for everyone!
You must know what you can tolerate before using “SARs”. If you
don’t, then try “Paper Trading” and see how you feel. You will know
pretty quickly if using “SARs” is for you.

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