Parabolic SAR (Standard)

Category: trend

Calculates the Parabolic Stop and Reverse (SAR) to identify potential trend reversals and provide trailing stop levels.

Formula

SAR_{n+1} = SAR_n + \alpha (EP - SAR_n) \text{ where } \alpha \text{ is acceleration factor and } EP \text{ is the extreme point in the current trend.}

Inputs

• start (default: 0.02)
• increment (default: 0.02)
• maximum (default: 0.2)

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