Please enable Index of lagging indicators to use our menu! Parabolic SAR Parabolic SAR was developed by J. New Concepts in Technical Trading Systems.
SAR stands for stop and reverse. Parabolic SAR should only be employed in trending markets – when it provides useful entry and exit points. It is plotted in a rather unorthodox fashion: a stop loss is calculated for each day using the previous days data. The advantage is that the stop level can be calculated in advance of the market opening. A stop level below the current price indicates that your position is long. A stop level above the current price indicates that your position is short. Go long when price meets the Parabolic SAR stop level, while short.
Go short when price meets the Parabolic SAR stop level, while long. Go long at after price respects the MA. Price then breaks out of the range, confirming our signal. Exit when price activates the Parabolic SAR stop.