A technical analysis strategy that uses a trailing stop and reverse method (called "SAR," Stop-And-Reversal) to help determine good exit and entry points for investing.
The Parabolic SAR allows can be used by an investor to follow the values in an up or downward trend until the SAR point is reached and the trend is reversed. It is primarily used in trending markets and is based on always having a position in the market. The indicator may also be used to determine stop points and estimating when you should reverse a position and take a trade the opposite direction.