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📘 What is Parabolic SAR


SAR stands for Stop And Reverse — it’s a trend-following indicator 
It helps you identify trend direction and potential reversal points.

🔹 How It Looks

On your chart:

  • The blue dots below the candles → uptrend (bullish)
  • The blue dots above the candles → downtrend (bearish)

So visually:

  • Dots below price = price trending up.
  • Dots above price = price trending down.


📊 How to Read It


1️⃣ When Dots Are Below the Candles

  • This signals a bullish trend.
  • You can look for buy opportunities.
  • Use the dots as a trailing stop — if the price closes below the dots, it might be time to exit or reverse.


2️⃣ When Dots Are Above the Candles

  • This signals a bearish trend.
  • You can look for sell opportunities.
  • Again, use the dots as a trailing stop — if the price closes above the dots, it might be a trend reversal.


🔄 When the Dots Switch Sides

That’s the most important signal:

  • If dots flip from below to above → possible sell signal (trend reversal down).
  • If dots flip from above to below → possible buy signal (trend reversal up).

⚠️ However, wait for candle confirmation (like a strong engulfing candle) before entering

         — Parabolic SAR can give false signals in sideways markets.



🧭 Example from Your Chart

Looking at your chart:

  • Timeframe: M30 (30-minute)
  • The blue dots are below the candles, showing that gold is in a strong uptrend.
  • As long as the dots stay below, the trend remains bullish.
  • If you see the next few candles print a dot above, that will be an early warning of reversal.

So right now → trend is still upward, but the candles near $4100 show consolidation (sideways movement).
Watch for the first dot to appear above — that’s your potential short signal.

⚙️ Pro Tips for Using Parabolic SAR

✅ Works best in trending markets, not sideways.
✅ Combine it with moving averages or Bollinger Bands for confirmation.
✅ Use it to trail your stop loss — move your SL to the latest SAR dot as price moves in your favor.
✅ On gold, M15–H1 timeframes usually give better SAR signals than M1–M5 (too noisy).