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Trading glossary

What is Parabolic SAR?

IndicatorsIntermediate

The Parabolic SAR (Stop And Reverse) places dots above or below the price to indicate trend direction and potential reversal points. Dots below price are bullish; dots above are bearish. It's particularly useful for trailing stops — as the dots move closer to price, the trend may be weakening.

Related terms: Trailing Stop Trend Reversal

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