Parabolic Indicator

Parabolic Indicator - Parabolic Indicator sets the trailing price stops for the short and the long situations. It is the stop-and-reversal indicator (SAR). It is more popular for setting the stops than for a direction establisher or a trend. When the trend is shifting upward, it is time to buy. When the trend is shifting downward, it is time to sell. At the beginning of the move, it will provide a greater cushion to pad between the price and the trailing stop. As movement continues, the distance between the price and the indicator will grow smaller. This action causes a favorable price increase.