Parabolic Stop-and-Reverse

Parabolic Stop-and-Reverse

The Parabolic Stop-and-Reverse calculates a trailing stop. It assumes that you are always in the market, and calculates the Stop And Reverse point when you would close a long position and open a short position or vice versa.

You should close long positions when the price falls below the SAR and close short positions when the price rises above the SAR.