This strategy is quite unique because the Parabolic SAR is primarily designed as a trend-following indicator, not a countertrend one. Under normal conditions, the Parabolic SAR provides a dot below the price during an uptrend and a dot above the price during a downtrend, so the signal is generally used to follow the trend direction. However, in your version of the explanation, this strategy actually utilizes the Parabolic SAR's lag as a signal to enter against the trend when the indicator is deemed "too late" in following the movement.
