#Crypto2025Trends
🔥 The Parabolic Stop and Reverse (SAR) indicator is a popular technical analysis tool used to determine the direction of an asset's price trend and identify potential reversal points. It was developed by J. Welles Wilder Jr., who also created the Relative Strength Index (RSI).
How SAR Works
1. Parabolic SAR Calculation:
The indicator plots dots (or points) either above or below the price on a chart:
Below the price: Indicates an uptrend.
Above the price: Indicates a downtrend.
When the dots switch from above to below (or vice versa), it signals a potential trend reversal.