The Technical indicator, Parabolic SAR, is used to analyse and determine the movement of asset that in which direction it moves. The indicator is aspected to provide good results showing the actual direction of movement of Price in a trending environment. However, it should not be used when the price starts moving sideways. Parabolic SAR indicator is also abbreviated as Stop and Reverse System, because it aims to identify the potential reversals in the price movement of traded assets.
The Parabolic SAR indicator graphically shows the series of dots on the chart of an asset or price indicating the direction of movement of price. Small dots are placed below the price when trend is Up and small dots are placed above the price when trend is down.


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