Parabolic SAR

The parabolic Stop and Reverse (SAR) indicator, developed by J. Welles Wilder Jr. is used by traders to determine trend direction, potential reversals in price and to identify entry-exit points. When plotted on a chart, it resembles a parabolic curve. A series of dots are plotted on a chart, either above or below an asset’s price, depending on the direction the price is moving. A dot is placed below the price when it is trending upward, and above the price when it is trending downward.