What Parabolic SAR shows
Dots that trail price and speed up as the trend continues.
Indicator guide · Trend
Parabolic SAR: what it shows, settings and how to read it.
Dots that trail price and speed up as the trend continues.
How it is calculated
A dot trails price and speeds up each time price makes a new extreme. The speed (acceleration factor) starts at 0.02, rises by 0.02 per new extreme and is capped at 0.2. When price touches the dot, it flips to the other side.
Usual settings
Start 0.02, step 0.02, maximum 0.2.
How traders read it
Dots under price mean uptrend; dots above mean downtrend. A flip is a possible exit.
Where it fails
Flips constantly in sideways markets.
What to combine it with
ADX: the dots work in a trend and fail in a range, so a trend-strength check matters.
Try Parabolic SAR on a live chart
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose Parabolic SAR. Click its name on the chart to change the settings. It is free for every member.
More in "Trend": SuperTrend · ADX · All 25 indicators
Questions
Frequently asked questions
What is the Parabolic SAR indicator?
Dots that trail price and speed up as the trend continues.
What are the best settings for Parabolic SAR?
The usual settings are: Start 0.02, step 0.02, maximum 0.2. No setting is best in every market, so test a change on past data before relying on it.
Is Parabolic SAR reliable on its own?
No single indicator is. Flips constantly in sideways markets. Most traders use it together with: ADX: the dots work in a trend and fail in a range, so a trend-strength check matters.
How do I add Parabolic SAR to a chart for free?
Sign in, open Genni Charts, press the "ƒx Indicators" button above the chart and choose Parabolic SAR. Click its name on the chart to change the settings. It is free for every member.
This page is education, not investment advice. Trading involves substantial risk of loss. Read next: Trading indicators · Trading strategies · Candlestick patterns