The Parabolic SAR Indicator An Innovative Strategy by Sofien Kaabar, CFA Investors Handbook
ContentInitializing the Parabolic SARPersonal toolsTrending MarketHow Parabolic SAR workHow to Use Parabolic SAR In forex TradingHow the Parabolic SAR Indicator WorksParabolic SAR (Stop and Reverse) Once this is complete, we have an _updateCurrentVals() method that will take the new high/low values and check for any reversals and make updates to our SAR if necessary. There's nothing difficult about any of the above calculations. You're just taking some min/max values and updating SAR and AF at each time step. Despite that, the entire algorithm is a bit complicated because of all of the if/else statements. The strategy is based on EMA crossover either above or below the price action. It is more like a trailing https://www.bigshotrading.info/ stop, where traders match the stop-loss price with the SAR dots when the price movement rises or falls. Initializing the Parabolic SAR It found that the Parabolic SAR demonstrated a statistical significance of 95% confidence level, while the simple moving average failed to return results as impressive. In an uptrend, the SAR value is derived from its previous highs. The highest and lowest points of the trend direction are referred to as extreme points . The sensitivity of the indicator can also be adjusted using the Maximum...