Glossary · Pro tools

Parabolic SAR

Dots that trail the price and jump to the other side when the trend turns.

Why it matters

SAR means stop and reverse. The dots speed up as a trend extends, so they work as a trailing stop.

How to read it

Dots below the price: uptrend. Dots above: downtrend. In sideways markets it flips often and gives false signals.

Also called: SAR

Related

In the Cluenex app, this explanation opens next to every parabolic sar figure, with the live reading for the stock you are looking at. Open it in Cluenex