Parabolic SAR
Parabolic SAR, short for stop and reverse, plots dots above or below price to track a trend and indicate possible reversals. Its calculation uses recent price extremes and an acceleration factor. Dots can switch sides frequently in sideways markets, producing misleading reversal signals.
In a hypothetical rising market, SAR dots sit below price. When price crosses the calculated SAR level, the dots switch above price, indicating a possible change in trend.
Risk warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Glossary definitions are general education only and are not investment advice. Risk disclosure