Trend and moving averages
Parabolic SAR
Parabolic SAR places dots below the price in an uptrend and above it in a downtrend. The dots move closer to the price as the trend continues.
How to read it
- Dots below price = uptrend; dots above = downtrend.
- When the price touches the dots, they flip to the other side.
- Often used as a trailing stop.
Settings
Default start 0.02, step 0.02, max 0.2.
Example rule to test
Exit idea: keep a long position while the dots stay below the price.
Common mistake
Using SAR flips as entries in sideways markets.
Try it free on iTradeChart
For learning only. Backtests use past data and do not guarantee future results. Not investment advice.