Parabolic Indicator

What does it 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.

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

Terms Related Links

Chartist
Technical Analysis
Trailing Stop

Terms 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?

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