The Parabolic SAR (Stop And Reverse) technical indicator is a study for analyzing trending markets.
When the price is in an uptrend, the SAR appears below the price and converges upwards towards it. Similarly, on a downtrend, the SAR appears above the price and converges downwards.
If the price crosses Parabolic SAR lines, the indicator switches so that its further values are located on the other side of the price. When such an indicator switch occurs, the maximum or the minimum price for the previous period would serve as the starting point. When the indicator switches, it indicates a the trend end (correction stage or flattening) or the trend reversal.
||The initial value of the acceleration factor.|
||The maximum value of the acceleration factor.|
*For illustrative purposes only. Not a recommendation of a specific security or investment strategy.