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Apply Parabolic SAR Indicator

For use in trending markets, parabolic SAR uses a trailing stop and reverse method to help determine good exit and entry points. The Parabolic SAR calculation is:

SARt+1 = SARt+ AF x (EPtradex SARt)

Where:

SARt+1 — next period's SAR

SARt - current SAR

AF - acceleration factor, begins at .02 and increases by .02 to a maximum of 0.20.

Note: You can reset the initial, increments and maximum acceleration factor when you create the study.

EPtrade — the extreme price (HIGH for long positions and LOW for short positions).

 

To apply a Parabolic SAR indicator

  1. From within a chart, from the Edit menu select Studies.
  2. Choose Parabolic SAR and Add the study.
  3. Complete parameters as necessary.

 

Important Disclosures