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- Trading on a Trend Reversal
If the first Parabolic SAR dot appears beneath a green candlestick, this is probably a signal of an upward price reversal.
If the first Parabolic SAR dot appears above a red candlestick, this is probably a signal of a downward price reversal.
Note that the appearance of a second confirming dot after the indicator has changed direction is a trend reversal signal.