This indicator is charted as a series of dots indicating the ongoing trend.

PSAR uses acceleration factors and also a built-in trailing stoploss to decide trend direction.

Like MACD and many others, PSAR is always long or short. Thus it tends to loose money in a sideways market. All the same, tests indicate reasonable results on the docile LTC/BTC pair.

Investopedia has an exhaustive article on this algo. They suggest using PSAR together with certain filters to stop it from entering during a sidways marketphase.