Parabolic SAR

The Parabolic indicator, based on Welles Wilder's Parabolic Time/Price Strategy, is used to determine when to stop and reverse your position (SAR) in a market utilizing time/price-based stops. Once a Parabolic SAR is reached, the current position is exited and a new position in the opposite direction is taken.

This indicator is primarily used in trending markets and is based on always having a position in the market. This indicator helps to determine stop points and when you might reverse a position and trade the opposite direction.