We are what we think; all that we are, arises with our thoughts; with our thoughts, we make the world.

One indicator that can help us determine where a trend might be ending is the Parabolic SAR (Stop And Reversal).

Parabolic SAR

A Parabolic SAR places dots, or points, on a chart that indicate potential reversals in price movement. From the chart above, you can see that the dots shift from being below the candles during the uptrend, to above the candles when the trend reverses into a downtrend. 

When the dots are below the candles, it is a buy signal; and when the dots are above the candles, it is a sell signal. 

This tool is best used in markets that are trending.  You DON’T want to use this tool in a choppy market where the price movement is sideways.

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