Parabolic SAR

Parabolic SAR (Stop and Reverse) plots a series of dots above or below the price that trail a trend, flipping to the opposite side of the price when the trend reverses. It's commonly used both to identify trend direction and as a dynamic trailing-stop level that tightens as a trend matures. Parabolic SAR performs best in strong trending conditions and produces frequent, unreliable flip signals in sideways or choppy markets, so it's often combined with a trend-strength filter like ADX.