SAR (Parabolic SAR), a technical indicator was developed to analyze trend markets. The indicator is shown on a price chart. In essence, this indicator is similar to the moving average; the only difference is that Parabolic SAR moves at a more accelerated rate (AF – acceleration factor) and may change its position in relation to the price. On the Up Trend, the indicator is below prices and on the Down Trend, it is above them.
Indicator view on the chart.
To add and set up this indicator , open the settings window.
Acceleration - a SAR value for the previous period.
Acceleration Step - determines the SAR sensitivity.
Acceleration Max– the highest value of the current Up trend or the lowest value of the current Down trend.
Starting from the reading 0.02, the AF increases by 0.02 each time when the extreme point reaches new maximum or minimum. In addition, the acceleration factor may reach the maximum of 0.20, independent of the trend development duration. If one takes this factor as the moving average, the AF starts from the reading 99 days and accelerates gradually to the maximum moving average for 9 days.
When a current value of Parabolic SAR is calculated, the following two exclusions are taken into account:
- In case of the Up trend, SAR cannot exceed the minimums of two previous periods. If SAR exceeds one of them, the minor is used.In an uptrend, the SAR may not be higher than the lows of the previous two periods. If the SAR is greater than one, instead, the smaller of the two.
- In case of the Down trend, SAR cannot be less than the maximums of two previous periods. If SAR is less than one of them, the greatest is used.
Panel – selection of the indicator position on the chart:
- New panel.
Color – color setup of the index.
Visual type – visual setup of the indicator display on the chart:
- Up arrow
- Down arrow
- Axis label
Line style - setup of the line display:
Width – width setup for the indicator line.
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