Indicator Description

SAREXT (Extended Parabolic Stop and Reverse) is an extended version of the SAR indicator, providing more flexible trend tracking and signal generation by incorporating additional parameters.

Calculation Principle

SAREXT is calculated using the following formulas:

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

Where:

• EP (Extreme Point) is the extreme point in the trend
• acceleration is the acceleration factor, using different initial and maximum values based on trend direction
• The offsetonreverse parameter can be used to adjust the offset during reversals

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 SAREXT point breakthroughs
4. Pay attention to market trend changes