Parabolic SAR

Parabolic SAR is a technical indicator that gives you buy and sell signals based on changes in momentum.

Although the parabolic SAR is difficult to calculate (we won't go into specifics), it is very easy to interpret. Simply, when the parabolic SAR flips below the historical prices, it is a buy signal, while if it flips above then it is a sell signal.

The basis of how the parabolic SAR is calculated is whether momentum has a high likelihood reversing soon.