The Parabolic SAR (Stop and Reverse) is a trend-following indicator designed to provide potential entry and exit points in financial markets. Developed by J. Welles Wilder Jr., it appears as dots positioned either above or below the price chart, depending on the direction of the trend. When the price is in an uptrend, the dots are typically beneath the price, indicating a stop-loss level; conversely, in a downtrend, the dots are above the price. The indicator is particularly useful for identifying momentum shifts and potential reversals but can produce false signals in choppy or sideways markets.