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Trading Glossary

Parabolic SAR (Stop and Reverse)

The Parabolic SAR or the Parabolic stop and Reverse is the one of the trailing stop based trading system in which the trader used the technical indicators. Technical indicators ate the parabolic SAR that is know as the momentum indicators that used to identify the potential trend reversals to predict the price to strong upward and downward positions.A reversal can be an uptrend changing into a downtrend, or a downtrend changing into an uptrend.