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 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. Create a realtime interactive chart.

2. On the Charts menu select Add Study.

3. From the list of study indicators, select Parabolic SAR.

Copyrights and Trademarks