timetotrade

Help Manual Home Page

Charts
  MACD
  RSI



This is the TimeToTrade help wiki. Use the TimeToTrade Trigger Trading Technology™ to execute your trades when Price, Candle Stick, Trend Line, Volume and Technical Analysis chart conditions are met - no coding required. Trade directly in the world’s global markets. Backtest your Trading Strategies. Calculate your UK HMRC Capital Gains Tax liabilities. Manage your Investment Club.


Parabolic SAR

The Parabolic SAR is used to confirm the direction of a trend and indicates potential reversals in price movement. The indicator appears as a series of dots, positioned above and below the price chart. The position of the dots relative to the price indicates the direction the price is moving in. If the dots are below the price this is considered to be bullish and that the price will continue in an upward trend, suggesting buying or going long. If the dots are positioned above the price this is considered bearish, suggesting selling or going short.


The point at which the dots switch position from below the price to above the price (and vice –versa), indicates a reversal in price movement and that a potential change of trend has occurred – providing a buy signal when the dots moves below price and a sell signal when the dots moves above price.


Parabolic SAR Indicator 1.png


The Parabolic SAR is very useful for setting trailing stop loss orders. (Indeed, SAR is short for “Stop And Reversal”). The stop loss is moved in line with the Parabolic SAR level, locking in profits.


The “parabolic” in the indicator’s name refers to the parabolic shape the dots take as a trend forms. Immediately following a point of reversal the pattern of dots will appear flat and closely spaced together, as the trend picks up the dots become spaced further apart, the gradient increases and the dots move closer to the price – eventually crossing the price, at which point the reversal is deemed to have occurred. The longer the price remains in trend the more steeply the dots rise or fall.


The parabolic SAR works very well when a stock is trending. If the price is moving sideways then the indicator is unreliable and many false buy and sell signals can be generated. For this reason the indicator is generally used in conjunction with other trending indicators (eg MACD, ADX) to establish and confirm the dominant the trend.


To view a Parabolic SAR chart, click on the “settings” button and select “Parabolic SAR” from the drop down Chart Display menu. The period and maximum period used to calculate the Parabolic SAR are set to 0.02 and 0.2 respectively by default. You can change these to suit your trading strategy. Click the “refresh” button to update the chart or the “save” button to make this your default chart set-up.


Parabolic SAR Formula

The two key parameters used when calculating the Parabolic SAR are the:

  • Acceleration Factor (AF) Increase
  • Acceleration Factor (AF) Maximum


Each time the price increases in value the Acceleration Factor is increased by the Acceleration Factor Increase value. For example if the Acceleration Factor Increase value is 0.02, then on each incremental bullish price move, the Acceleration Factor increases by 0.02 until it reaches the Acceleration Factor Maximum value which is typically 0.2. When the price changes trend, the Acceleration Factor is reset and then increases by 0.02 on each bearish price move, until it reaches the Acceleration Factor Maximum value as per the previous example.


During a bullish move the Extreme Price is calculated on each interval based on the Highest HIGH price since the start of the bullish move. On a bearish move the Extreme Price is based on the Lowest Low since the start of the bearish move.


During a bullish move, the Stop and Reversal (SAR) value is based on the minimum of current LOW relative and the previous LOW price versus the Acceleration Factor multiplied by the difference between the previous Extreme Price and the current Extreme Price, added to the current Extreme Price:


Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://api.formulasearchengine.com/v1/":): {\displaystyle \text{Bullish Parabolic SAR} = \displaystyle \quad MIN \quad ( \qquad MIN( \quad \qquad \text{Current LOW}, \quad \qquad \text{Past LOW} \qquad), \qquad \text{Extreme Price } + \text{ Acceleration Factor } *(\text{Previous Extreme Price } - \text{ Extreme Price}) \quad) }


During a bearish move, the Stop and Reversal (SAR) value is based on the minimum of current HIGH relative and the previous HIGH price versus the Acceleration Factor multiplied by the difference between the previous Extreme Price and the current Extreme Price, added to the current Extreme Price:


Failed to parse (MathML with SVG or PNG fallback (recommended for modern browsers and accessibility tools): Invalid response ("Math extension cannot connect to Restbase.") from server "https://api.formulasearchengine.com/v1/":): {\displaystyle \text{Bullish Parabolic SAR} = \displaystyle \quad MAX \quad ( \qquad MAX( \quad \qquad \text{Current HIGH}, \quad \qquad \text{Past HIGH} \qquad), \qquad \text{Extreme Price } + \text{ Acceleration Factor } *(\text{Previous Extreme Price } - \text{ Extreme Price}) \quad) }


Parabolic SAR Indicator

The Parabolic SAR indicator can be displayed on the TimeToTrade charts. To add the Parabolic SAR indicator to the TimeToTrade charts, go to the chart settings and click on the 'Add Indicator' button. Click on the search box and type the name of the indicator that you are looking for, or for example type Parabolic SAR and scroll through the results:


Generic Indicator Settings 1.png


After adding the Parabolic SAR indicator, within the chart settings, click on it to set the parameters and change colours.



Parabolic SAR Alerts

Alerts can be set up to provide an Email or SMS text message notification of when your Parabolic SAR indicator chart conditions have been met, backtest trading strategies or execute demo trades. To learn more:



It has never been easier to execute your trading strategy. Our Trigger Trading Technology ® means you can now automatically execute your trades directly in the world’s global markets.


You need never miss a trading opportunity again!


Do you want to:

  • buy when your technical analysis chart conditions are met? Really buy, not just get an email or sms alert?
  • or sell when a support trend line is broken?
  • or back-test your strategy going back as far as 30 years?


TimeToTrade's Trigger Trading Technology™ is truly game changing. It gives you a trading advantage. The power to take your trading to a new level.


Open a FREE TimeToTrade account today to:


  • Trade UK, US and European Shares - apply now
  • Execute trades when your Price, Candlestick, Trend Line, Volume and Technical Analysis chart conditions are met using the Trigger Trading Technology® - learn more - help video
  • Email and SMS Trigger Trading™ Alerts - learn more
  • Trade Off The Chart - learn more
  • Back Test Trading Strategies with up to 30 years of historical data - learn more
  • Create Simulated Trading Accounts to test your Trigger Trading™ Strategies - learn more
  • Real time Forex, UK, European and US stock market data - learn more
  • 170+ Technical Analysis and Candlestick Pattern Indicators - learn more
  • All the tools you need to set up and run a successful investment club - learn more
  • Manage your Portfolio and calculate UK HMRC Capital Gains liabilities and SA 108 CGT Tax Returns - learn more
  • Create Trading Competitions for you and your friends - learn more
  • Apply for a trading account today to get the Live Account Features - apply now


Apply now to try our superb platform and get your trading advantage.



The information and data provided is for educational and informational purposes only. Interpretation and use of the information and data provided is at the user's own risk. All information and data on this website is obtained from sources believed to be accurate and reliable. However, errors or omissions are possible due to human and/or mechanical error. All information and data is provided "as is" without warranty of any kind. We make no representations as to the accuracy, completeness, or timeliness of the information and data on this site and we reserve the right, in its sole discretion and without any obligation, to change, make improvements to, or correct any errors or omissions in any portion of the services at any times. Past performance is not a guarantee of future results. Trading carries a high level of risk to your capital and can result in losses that exceed your deposits. It may not be suitable for everyone so please ensure you fully understand the risks involved.


All services are provided by Mercor Index Ltd. TimeToTrade is a trading name of Mercor Index Ltd (a company registered in England and Wales under number 9479466). Our Registered address is 1st Floor, Aldermary House, 10-15 Queen Street, London, EC4N 1TX. Mercor Index Ltd is authorised and regulated by the Financial Conduct Authority number 679941.


The trading services offered by Mercor Index Ltd are not available to residents of the United States and are not intended for the use of any person in any country where such services would be contrary to local laws or regulations. Subscriptions to TimeToTrade products are available if you are not eligible for trading services.


It has never been easier to execute your trading strategy. Our Trigger Trading Technology ® means you can now automatically execute your trades directly in the world’s global markets.


You need never miss a trading opportunity again!


Do you want to:


TimeToTrade's Trigger Trading Technology™ is truly game changing. It gives you a trading advantage. The power to take your trading to a new level.


Open a FREE TimeToTrade account today to:



Apply now to try our superb platform and get your trading advantage.



The information and data provided is for educational and informational purposes only. Interpretation and use of the information and data provided is at the user's own risk. All information and data on this website is obtained from sources believed to be accurate and reliable. However, errors or omissions are possible due to human and/or mechanical error. All information and data is provided "as is" without warranty of any kind. We make no representations as to the accuracy, completeness, or timeliness of the information and data on this site and we reserve the right, in its sole discretion and without any obligation, to change, make improvements to, or correct any errors or omissions in any portion of the services at any times. Past performance is not a guarantee of future results. Trading carries a high level of risk to your capital and can result in losses that exceed your deposits. It may not be suitable for everyone so please ensure you fully understand the risks involved.


All services are provided by Mercor Index Ltd. TimeToTrade is a trading name of Mercor Index Ltd (a company registered in England and Wales under number 9479466). Our Registered address is 1st Floor, Aldermary House, 10-15 Queen Street, London, EC4N 1TX. Mercor Index Ltd is authorised and regulated by the Financial Conduct Authority number 679941.


The trading services offered by Mercor Index Ltd are not available to residents of the United States and are not intended for the use of any person in any country where such services would be contrary to local laws or regulations. Subscriptions to TimeToTrade products are available if you are not eligible for trading services.

</div>
Retrieved from "?title=Parabolic_SAR&oldid=37009"