Indicators & Analysis
Intermediate
Parabolic SAR
Also called: SAR, PSAR
A trend-following stop-and-reverse indicator that plots dots above or below price to signal trend direction.
Definition
Parabolic SAR (Wilder) plots dots that flip from below price (uptrend) to above price (downtrend) as the trend reverses. The dots accelerate toward price over time, eventually triggering a ‘stop and reverse’.
Best in strong trends, miserable in ranges — combine with ADX to filter out chop.