SAR (Stop and Reverse)
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
- Trend identification and tracking
- Stop-loss level setting
- Trend reversal confirmation
- Trading signal generation
Usage Recommendations
- Adjust parameters based on market volatility
- Use in combination with other technical indicators
- Monitor SAR point breakthroughs
- Pay attention to market trend changes