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Pyxus International, Inc. (NYSE: PYX)
Pyxus is in the midst of a major rebranding and may be on your radar sooner than later as more and more news flow and developments come out from them. Pyxus defines themselves as a global agricultural company with 145 years' experience delivering value-added products and services to businesses and customers. Their subsidiary Goldleaf Pharm Inc. has recently received its ACMPR cultivation license from Health Canada. There seems to be a lot of buzz surrounding this stock in the cannabis space recently. The prices have recently undergone a parabolic move as well. Perhaps you are wondering what to look for when prices go parabolic. Today we are going to address this concern to help you aid your decision in entering and exiting a position.
Today we are going to discuss how you can use the parabolic SAR overlay when you are looking for potential entries and exits to your position. One thing you should know about this indicator is that it generally works best in stocks that are moving steeply in share price when combined with your other preferred signals of course. Take our example of Pyxus here. You can see after the price starts heading up aggressively that the dotted blue line follows it sort of like a shadow. This represents an ideal area to set stop. So if the prices drop below the parabolic SAR then you would generally exit your position or a portion of it depending on your trading and investing strategy. This can also be used to gauge when to enter a position as well. When the dotted lines are above and the price moves above this line then it is seen as a bullish and good time to close a short position (assuming you are short) or a good time to go long. Please observe the sideways movement prior to the big breakout. If you use this overlay when the prices are generally not volatile you are likely to get a lot of false signals. It is best used when prices are going parabolic and a way to follow the trend. Speaking of parabolic, I hope the future of your gains is parabolic.
Note: This is an American ticker for those looking to diversify