Parabolic SAR

Stop-and-Reverse trend dots.

What is Parabolic SAR?

SAR (Stop and Reverse) places dots above or below price to indicate trend direction. Green dots below = uptrend (long stop), red dots above = downtrend (short stop).

Visual Encoding

  • Long Stop (green dots): Bullish: SAR below price (support)
  • Short Stop (red dots): Bearish: SAR above price (resistance)

Interpretation

  • Dot flip from below to above: Sell signal
  • Dot flip from above to below: Buy signal
  • Works best in trending markets
  • Data refreshes periodically — not real-time

Trading Signals

  • Buy: SAR flips from above to below price
  • Sell: SAR flips from below to above price
  • SAR dots accelerate toward price — use as trailing stop

Price Overlay

  • Close Price: Actual closing price (same Y-axis, dashed violet)
  • Price above SAR dots = uptrend confirmed (long stop active)
  • Price below SAR dots = downtrend confirmed (short stop active)
  • SAR dot flip with price follow-through = strong reversal signal

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