The Parabolic SAR (Stop And Reverse) prints a trailing dot above or below price that accelerates toward it over time. When price crosses the dot, the indicator flips sides, marking a potential trend reversal.
How traders use it
- Dots below price suggest an uptrend; dots above, a downtrend.
- Use the flip as a trailing-stop and reverse signal.
- It performs best in trending markets and whipsaws in ranges.
See it in dtcharts
Add Parabolic SAR from the indicators panel in the dtcharts terminal, or grab ready-to-paste code for MetaTrader, TradeStation and TradingView in the Parabolic SAR Traders' Tips article.