The Parabolic SAR is a great trend finding tool. Created by James Wilder; the creator of the RSI indicator.
- When prices are trending upwards, dots are placed below the price action.
- When prices are trending downwards, dots are placed above the price action.
The parabolic SAR can help keep you on the right side of the trend. Tracking shorter-term price trends.
Confirmation should be pulled from additional indicators too, but the Parabolic SAR provides both entry and exit signals too.
