Technical Indicators: Parabolic SAR

Last update - 29 August 2019 By Rivkin

The Parabolic SAR is a technical indicator based on both price and time used to signal reversals in trends, with the SAR referring to “stop and reverse”. The idea is that the Parabolic SAR is used as a trailing stop loss and to reverse a position on a close below this level. Developed by Welles Wilder and published in his 1978 book New Concepts in Technical Trading Systems the calculation is very complex and beyond the scope of this article.

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