📘 Crypto Indicators #56 — Parabolic SAR: Trend Reversal Detector and Smart Trend Follower
Do you want to know the moment when the trend is about to reverse?
The Parabolic SAR indicator is one of the most effective tools for this purpose.
🔥 Widely used by swing traders, scalpers, and even trading robots.
🌀 What is Parabolic SAR?
It stands for 'Stop And Reverse'
It is a technical indicator that follows trends and identifies potential entry and exit points through dots that appear on the chart:
If the dots appear below the candles → Uptrend
If the dots appear above the candles → Downtrend
🔁 And when the dots move from bottom to top (or vice versa) → Reversal signal
🧠 Why do traders use this indicator?
✅ Clearly reveals the moment of trend change
✅ Provides smart stop loss points
✅ Easy to read and does not require deep technical expertise
📍 An effective tool for determining the end of the current trend and the beginning of the opposite trend.
🛠️ How to use Parabolic SAR in trading?
💡 Entry and exit:
When the dots move from top to bottom → Buy
When the dots move from bottom to top → Sell
💡 As a dynamic stop loss:
Place the stop loss below the last SAR point (if you are in a buy position)
Or above the last SAR point (if you are in a sell position)
💡 Combine it with other indicators:
Use it with RSI or MACD to confirm reversals
Use it with trend lines to accurately determine exit points
⚙️ How to add Parabolic SAR on the Binance platform?
Open the chart for any currency
Click on 'Indicators'
Type 'Parabolic SAR'
Click on it and it will immediately appear on the chart
📊 Default settings are usually good (0.02, 0.2) — but can be adjusted according to trading strategy.
⚠️ Important notes
🔸 It performs best in clearly trending markets
🔸 In volatile conditions, it may give false signals
🔸 Combining it with momentum indicators increases its accuracy
🔍 Parabolic SAR = Clarity of reversal + Precision of stop loss
If you are looking for a smart way to follow the trend without guessing...
👉 This indicator should be among your essential tools!
