Define: Parabolic SAR

UK Accounting Glossary

Definition: Parabolic SAR



Advertisement



Full Definition of Parabolic SAR


The Parabolic SAR provides a stop level for closing (or reversing) positions: long positions should be closed when the Parabolic SAR rises above the price and short positions should be closed when the Parabolic SAR falls below the price.  Some technical analysts use the stop level to enter a position in the opposite direction.

Generally, the Parabolic SAR indicator is represented as a dot above or below the price series.  When the dot is above the daily price then an open short position is implied.  Conversely, when a dot is displayed below the daily price then an open long position is implied.  The dot represents the stop level.  When a new position is established a wide stop is used.  As time progresses the stop tightens.


Advertisement




Cite Term


To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/parabolic-sar/
Modern Language Association (MLA):
Parabolic SAR. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. March 31, 2020 https://payrollheaven.com/define/parabolic-sar/.
Chicago Manual of Style (CMS):
Parabolic SAR. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/parabolic-sar/ (accessed: March 31, 2020).
American Psychological Association (APA):
Parabolic SAR. PayrollHeaven.com. Retrieved March 31, 2020, from PayrollHeaven.com website: https://payrollheaven.com/define/parabolic-sar/

Definition Sources


Definitions for Parabolic SAR are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 23rd March 2020.