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.