Parabolic stop and reverse






Developed by J.W Wilder Jr., Parabolic SAR is a technical indicator used to mark down potential price reversal points on an ongoing trend. The dots are placed below the trend on a bull run and above when the trend goes south. The indicator's effectiveness is at its peak during strong and steady trending markets other than that it is useless on range bound markets. Parabolic SAR provides a point to where a position should be liquidated when an ongoing trend shows signs of weakening.

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