1. What Is Parabolic SAR?
Parabolic SAR (Stop and Reverse) places dots above or below price to indicate trend direction and reversal points.
2. Interpretation
📊 Dot Positions
Dots below price: Uptrend; maintain a long position.
Dots above price: Downtrend; maintain a short position.
Dots switch sides: A trend-reversal signal.
3. Limitations
- Frequent false signals in sideways markets.
- Use alongside other indicators, such as ADX and Bollinger Bands.