Why do these dots keep switching sides?Tesla, Inc.BATS:TSLAInvestradeTSLA’s October candles swing back and forth, and the amber dots alternate above and below them. Compare that with the longer sequences beneath the August recovery. The tool is Parabolic SAR—“Stop and Reverse.” It calculates a trailing reference that changes sides when price penetrates the calculated SAR level. What moves the dots? SAR advances from its prior value toward the running extreme of the current trend: the highest high in an upward sequence or lowest low in a downward one. Our 4-hour chart uses Start 0.02, Increment 0.02, and Maximum 0.2. The acceleration factor begins at 0.02 and increases by 0.02 when a new trend extreme occurs, up to 0.2. Rules also keep the trailing value outside the preceding two bars’ ranges. That acceleration helps the dots catch up as a move develops. A reversal resets the calculation using the previous trend’s extreme and starts a new sequence on the other side. Read October before acting on a flip In early October, dots beneath the recovery give way to dots above the next pullback. Later in the month, another decline and rebound produce another side change. At the right edge of the October 22 snapshot, the dots are beneath price again. Their displayed value is about $353.48. That is the indicator’s calculated reference in this captured view, not a price target. The important comparison is the sequence: October contains repeated interruptions, whereas the August recovery has longer stretches with dots beneath advancing candles. The same settings respond differently to those two price paths. When is SAR useful? Use it to track how a trailing reference develops during a sustained move. Its October switches also show why a reversal marker deserves context: frequent crossings in choppy trading can produce repeated changes without a lasting new trend. A dot changing sides describes the indicator’s state. Judge the surrounding price structure before interpreting its practical significance. Try it Follow a run of dots beneath August’s candles, then inspect October’s alternating runs. Where does price first penetrate the trailing level? Compare the completed candles on either side of that switch. The final October 22 bar was still forming when this screenshot was taken. Follow @Investrade for more Chart Basics. For educational purposes only. Securities shown are illustrations, not recommendations to buy or sell. Past performance does not guarantee future results. Investing involves risk, including loss of principal.