01 · Indicator · Parabolic SAR
What is Parabolic SAR?
Created by J. Welles Wilder in 1978, the Parabolic SAR plots dots below price in an uptrend and above in a downtrend.
The dots accelerate as the trend extends, hence 'parabolic'.
02 · Indicator · Parabolic SAR
The calculation
SARₜ₊₁ = SARₜ + AF × (EP − SARₜ), where EP is the trend extreme and AF an acceleration factor from 0.02 to 0.20.
AF rises by 0.02 at each new extreme.
03 · Indicator · Parabolic SAR
Reading the signals
When price hits the dots the SAR flips: an exit or reversal signal.
It excels in trends and is often wrong in ranges.
04 · Indicator · Parabolic SAR
Settings and combinations
Parabolic SAR uses the classic 0.02 / 0.20 settings in the Trend group. It pairs well with: Supertrend, ADX / DMI, ATR (Average True Range).
To put the signal in context, check the Heatmap, the news or ask the AI Compass. No indicator is investment advice.
◆ Step by step
Get started in 4 steps
- 01
Open a chart
Search for an asset on the Charts page and pick a timeframe.
- 02
Add the indicator
Open Indicators, Trend group, then click Parabolic SAR.
- 03
Adjust the settings
Change the parameters in the indicator sheet to suit your horizon.
- 04
Confirm the signal
Cross-check with the main trend and another indicator before concluding.
◆ FAQ
Your questions, clear answers.
01What does SAR mean?
Stop And Reverse: the level acts as a stop then reverses the position.
02Does SAR give entries?
It is mostly used to manage exits or a trailing stop.
03What to pair it with?
The ADX, to check a trend exists.