The Parabolic SAR (Stop and Reverse) is a trend-following indicator used in Forex to determine potential entry and exit points. It’s plotted as a series of dots either above or below the price on a chart, indicating the direction of the trend. • Dots below the price signal an uptrend, suggesting a buy signal. • Dots above the price signal a downtrend, suggesting a sell signal. The Parabolic SAR moves closer to the price as the trend progresses, and when the price reverses, the dots switch sides, signaling a potential trend change. The indicator is most effective in trending markets but can produce false signals in sideways or choppy markets. Traders typically use it in conjunction with other indicators or price action to confirm trend strength and avoid whipsaws. Its key purpose is to help traders set trailing stop-loss orders and manage risk. #firstdealofthenewyearFateema