— HOW IT WORKS
What Parabolic does, and when it works.
Parabolic SAR (Stop And Reverse) plots dots that trail price and flip sides as the trend changes. The acceleration factor speeds the dots up as a trend extends, tightening the implied stop.
It is a clean, mechanical trailing-stop and trend-direction read — when dots are below price, bias is up; above, down. Many traders use it purely for stop management rather than entries.
SAR is famous for whipsawing in ranges; it assumes a trending market. Filter it with ADX or a higher-timeframe bias.
— BEST FOR
Where it earns its slot.
cryptotrendswing-trading