Indicator Description

SAR (Parabolic Stop and Reverse) is a trend-following indicator that identifies trend reversal points through a parabolic pattern, providing stop-loss and entry signals.

Function Information

• Function Name: SAR
• Input Parameters: High, Low
• Parameter Settings: acceleration (default: 0.02), maximum (default: 0.2)
• Output: SAR value

Calculation Principle

SAR is calculated using the following formulas:

Uptrend:
SAR(t) = SAR(t-1) + acceleration * (EP - SAR(t-1))
Downtrend:
SAR(t) = SAR(t-1) - acceleration * (SAR(t-1) - EP)

Where:

• EP (Extreme Point) is the extreme point in the trend
• acceleration is the acceleration factor
• maximum is the maximum value of the acceleration factor

Usage Scenarios

1. Trend identification and tracking
2. Stop-loss level setting
3. Trend reversal confirmation
4. Trading signal generation

Usage Recommendations

1. Adjust parameters based on market volatility
2. Use in combination with other technical indicators
3. Monitor SAR point breakthroughs
4. Pay attention to market trend changes