Parabolic SAR (stop-and-reverse)
The Parabolic SAR (stop-and-reverse) function was developed by J. Welles Wilder, Jr. It is a lagging technical indicator that can help you to determine when a stock is set to have a change in trend. Applications of Parabolic SAR include generation of buy-sell signals and, in particular, determining when to exit from trades.
The Parabolic SAR formula requires the following input series:
- d0 - High data values - The first set of data values for which the Parabolic SAR is calculated, usually the daily high price of a stock.
- d1 - Low data values - The second set of data values for which the Parabolic SAR is calculated, usually the daily low price of a stock.
The Parabolic SAR function has the following parameter:
- s0 - Acceleration Factor - The acceleration factor used in the calculations.
- s1 - Maximum Acceleration - The maximum value that the acceleration is allowed to reach.
- Alignment (Optional) – Hierarchy placeholder to be used as the alignment axis.
The Parabolic SAR function generates the following output:
- Parabolic SAR - The Parabolic SAR result set.