Parabolic Stop and Release was introduced by J Welles Wilder. The Parabolic SAR is a trend following indicator that is designed to create a trailing stop. This is a point that follows a prevailing trend, giving a possible value for a stop loss order that is far enough away from the original trend to avoid being stopped out with a small consolidation and retraction moves. The trailing stop moves with the trend, accelerating closer to price action as time passes giving the path of the indicator a parabolic look. When price penetrates the SAR a new calculation is started taking the other side of the market with an initial setting that again allows a certain amount of initial volatility if the trend is slow to get underway.