Parabolic SAR (Stop and Reverse) Indicator

Beginners Technical Analysis Technical Analysis Basic Education Financial Terms Dictionary

Contents

The parabolic SAR indicator (stop and reverse) is used by technical traders to identify trends and reversals.

The indicator uses a system of points superimposed on the price chart.
A reversal occurs when these dots reverse, but a reversal signal in the SAR does not necessarily mean a price reversal. The reversal of PSAR only means that the price and the indicator have crossed.