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Back to Glossary
General TradingP

Parabolic SAR (Stop and Reverse)

A technical indicator that plots dots above or below the price chart to signal potential trend direction and reversal points. Dots below price indicate an uptrend; dots above indicate a downtrend.

Example

“When the SAR dots shifted from above to below the candlesticks on the 4-hour ETH/USD chart, the trader entered a long position anticipating a new uptrend.”