The parabolic SAR indicator is used by traders to determine trend direction and potential reversals in price.
The indicator uses a trailing stop and reverse method called "SAR," to identify suitable exit and entry points.
The parabolic SAR indicator appears as a series of dots, above or below an asset's price, depending on the direction the price is moving. A dot is placed below the price when it is trending upward , and above the price when it is trending downward .