what is the parabolic sar indicator 
the parabolic sar indicator developed by j wells wilder is used by traders to determine trend direction and potential reversals in price the indicator uses a trailing stop and reverse method called sar or stop and reverse to identify suitable exit and entry points traders also refer to the indicator as to the parabolic stop and reverse parabolic sar or psar the parabolic sar indicator appears on a chart as a series of dots either above or below an asset s price depending on the direction the price is moving a dot is placed below the price when it is trending upward and above the price when it is trending downward 1the formula for the parabolic sar indicatora rising psar has a slightly different formula than a falling psar rpsar prior psar prior af prior ep prior psar fpsar prior psar prior af prior psar prior ep where rpsar rising psar af acceleration factor it starts at 0 02 and increases by 0 02 up to a maximum of 0 2 each time the extreme point makes a new low falling sar or high rising sar fpsar falling psar ep extreme point the lowest low in the current downtrend falling sar or the highest high in the current uptrend rising sar begin aligned text rpsar text prior psar text prior af left text prior ep prior psar right text fpsar text prior psar text prior af left text prior psar prior ep right textbf where text rpsar rising psar text af acceleration factor it starts at 0 02 and text increases by 0 02 up to a maximum of 0 2 each text time the extreme point makes a new low falling text sar text or high left text rising sar right text fpsar falling psar text ep extreme point the lowest low in the current text downtrend left text falling sar right text or the highest high in the text current uptrend left text rising sar right end aligned rpsar prior psar prior af prior ep prior psar fpsar prior psar prior af prior psar prior ep where rpsar rising psaraf acceleration factor it starts at 0 02 andincreases by 0 02 up to a maximum of 0 2 eachtime the extreme point makes a new low fallingsar or high rising sar fpsar falling psarep extreme point the lowest low in the currentdowntrend falling sar or the highest high in thecurrent uptrend rising sar 