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Developed by Welles Wilder, creator of RSI and DMI, the
Parabolic SAR
sets trailing price stops for long or short positions. Also referred to as
the stop-and-reversal indicator (SAR stands for
"stop and reversal"), Parabolic
SAR is more popular for setting stops than for
establishing direction or trend. Wilder recommended establishing the trend
first, and then trading with Parabolic
SAR in the direction of the trend.
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