Technical
What is Parabolic SAR (PSAR)?
A trailing stop-and-reverse system that plots dots below price in uptrends and above it in downtrends, accelerating closer as the trend ages.
Formula
SAR(next) = SAR + AF Γ (EP β SAR), where AF accelerates from 0.02 to 0.20 and EP is the trend's extreme point
How to Interpret
The flip is the signal: when price crosses the dots, the system reverses sides β a PSAR Bull Flip marks the dots jumping from above price to below, suggesting downtrend exhaustion. The accelerating dots enforce discipline: the longer a trend runs, the tighter the trailing level hugs price.
Typical Ranges
Designed for trending markets and nearly unusable in ranges, where it flips constantly. The acceleration factor guarantees eventual exit even in trends that keep going.
Find Stocks Using This Signal
Screen US and Indian stocks by Parabolic SAR in the Technical Screener.