Parabolic Indicator

What Does Parabolic Indicator Mean?
A technical analysis strategy that uses a trailing stop and reverse method called "SAR," or stop-and-reversal, to determine good exit and entry points.

Also known as Parabolic Stop And Reverse (PSAR)

Investopedia explains Parabolic Indicator
This method was developed by J. Wells Wilder. Basically, if the stock is trading below the parabolic SAR (PSAR) you should sell. If the stock price is above the SAR then you should buy (or stay long).

Filed Under: Active Trading, Technical Analysis

Related Terms

Chartist
Technical Analysis
Trailing Stop
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Related Links

Introduction To The Parabolic SAR - Take a closer look at this indicator, which during a trending period, is a very useful and accurate tool.
Trailing-Stop Techniques - The important decision to exit a position must be based on more than emotion if you want to be a disciplined trader.
Candle Sheds More Light Than The MACD - Read the case against this well-established indicator.
How is the Parabolic SAR used in trading?
Five Chart Patterns You Need to Know - Learn to maximize profits in up and down markets with this free report from ChartAdvisor.com!
Pinpoint Entries & Exits on any market

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