Parabolic SAR

Parabolic SAR Interpretation:

Stop and reverse points are useful to detect trends as they follow the price direction. SAR direction is always the same during a trend. The trend continues while the points stay above or below the price. When the price penetrates a stop or reverse point, a signal is given for you to liquidate your current position and maybe take the opposite position.

Parabolic SAR Calculation:

SAR points are calculated from both price and time. The parameters are the initial acceleration factor (typically 0.02) the addition factor (typically 0.02) and the acceleration factor limit (typically 0.2)

Return from Parabolic SAR to Using Indicators

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