What is parabolic SAR? Back to list

Member SinceJul 08, 2021

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Kihn

Nov 16, 2022 a 14:40
The Parabolic SAR or Parabolic Stop and Reverse, not only helps you identify trends, but it also tells you when to close out your trade and reverse the direction, as the full name implies. Doesn't that sound very useful?

J. Welles Wilder, a commodities trader, and a hugely influential technical analyst developed a number of trading techniques, including the Parabolic SAR.

On a price chart, the indicator draws a curved pattern that describes potential stop and reverse levels. The pattern's shape reminded Wilder of the parabolic curve found in classical geometry and mechanics, hence the indicator's name.

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