How to understand the Parabolic SAR indicator.

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The Parabolic SAR (Stop and Reverse) is an indicator that helps identify trends in the market and possible reversal points. Here's how it works:

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Dots below the candlesticks: Indicate an uptrend. This suggests that the market is rising and may be a good time to maintain or open buy positions.

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Dots above the candlesticks: Indicate a downtrend. This suggests that the market is falling and may be a good time to maintain or open sell positions.

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When the dots change sides (from bottom to top or top to bottom), this signals a possible change in price direction.

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Tip: The Parabolic SAR is most effective in markets with strong trends. In times of laterality (prices oscillating without a clear direction), it can generate false signals. Always combine it with other indicators, such as moving averages or RSI, to confirm the signals. $BTC $ETH $SOL