Parabolic SAR System : Automated Trend and Level Tracking

Analysebourses offers you advanced tools based on the Parabolic SAR for precise analysis of market volatility and trends. This powerful technical indicator, combined with automatically generated support and resistance levels, provides you with a clear vision to optimize your trading strategies.
Our system detects acceleration and reversal phases through volatility modeling, providing you with alerts for potential volatility peaks. To refine your analyses, the Parabolic SAR helps you identify opportunities and manage risks..

Understanding the Parabolic SAR Indicator.

To learn more about this essential tool and how it works, please refer to our dedicated section on the definition of the Parabolic SAR.

Trading day of : 12/15/2025
EURUSD
SP500
HSI
CAC40
NIFTY 50

What is Parabolic SAR?

The Parabolic SAR (Stop and Reverse), developed by American technical analyst J. Welles Wilder in 1978, is a trend-following indicator primarily used to identify potential market reversal points. In fact, the Parabolic SAR helps determine when a bullish or bearish trend might reverse, allowing for better risk management and decision-making regarding entry or exit points.

How the Parabolic SAR Indicator Works

The Parabolic SAR appears on a chart as points positioned above or below the candlesticks (or price bars). When the Parabolic SAR points are below the prices, it generally indicates an uptrend. Conversely, when the points are above the prices, it indicates a downtrend. The moment the Parabolic SAR moves from below to above the price (or vice versa), it signals a potential trend reversal. This change in position of the points can be interpreted as a buy or sell signal.
When the price reaches a new extreme point (for example, a higher high in an uptrend), the acceleration factor increases, making the SAR more responsive to price changes. This allows the indicator to track the price more closely, but also makes it more sensitive to trend reversals.