Parabolic SAR (stop and reverse) System
The Parabolic SAR system, which was developed by Welles Wilder, is a short-term trend indicator.
It takes the shape of a series of points that show trend inversions.
When a point lies below the current price, the trend is positive (rising). On the other hand, when the point lies above the price, the trend is heading downward.
Using the Parabolic SAR System
The Parabolic SAR system is mainly used in markets that exhibit a strong trend. It is used as a stop indicator for short-term positions.
In a market that shows a clear trend, it can be combined with other indicators to generate buy and sell signals.
Default parameters: (Acceleration: 0.02) - (Maximum: 0.2)