The "Parabolic SAR" Indicator: Trend Reversal Signals

The "Parabolic SAR" (Stop and Reverse) indicator is a popular tool for identifying potential trend reversal points. It is a curve that is positioned below the price in a bullish trend and above it in a bearish trend, changing its position as market conditions change. The primary purpose of SAR is to suggest possible moments for entering or exiting a position. When the price crosses the indicator line, it can be a signal for a trend reversal. However, it is better to use it in combination with other analysis methods to confirm signals.