TradingCharts

Parabolic SAR

Use it as a trailing stop: hold longs while the dots are below price and exit (or reverse) when price hits a dot.

What it does

Parabolic SAR (stop and reverse) plots a trailing dot below price in uptrends and above price in downtrends. The dot accelerates toward price using an acceleration factor that starts at 0.02 and increases by 0.02 each time the trend makes a new extreme, capped at 0.20, so the stop tightens as a trend matures. When price touches the dot, the indicator flips to the other side and a new trend is assumed.

Typeoverlaydraws on the price chart

How to add it

Click Indicators (ƒx) in the header.

Search “Parabolic SAR” and click the result.

Hover its legend row and click the gear to open settings.

How traders use it

  • Use it as a trailing stop: hold longs while the dots are below price and exit (or reverse) when price hits a dot.
  • Only trade flips in the direction of a filter such as a 50-period EMA or ADX above 25, because SAR assumes the market always trends.
  • Let the accelerating dots lock in profit late in a trend, when they hug price tightly.
  • Lower the acceleration step (for example 0.01) to loosen the stop for swing trades, or raise it for faster exits.

Inputs

Input Type Default Range / Options
Symbol symbol — —
Start number 0.02 0.001–1
Increment number 0.02 0.001–1
Maximum number 0.2 0.001–1

Plots & styling

Plot Style Default color
PSAR cross #2196F3

Every plot's color, line width and visibility can be changed on the Style tab. Precision, price-scale labels and status-line values are configurable at the bottom of the Style tab.

Tips

  • Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
  • The legend eye toggles it off without losing your settings — handy for before/after comparisons.
  • Its price-scale label can be switched off per-indicator at the bottom of the Style tab if the axis gets crowded.
  • This indicator accepts another symbol — leave it empty to use the chart's own symbol.

Watch out for

  • In sideways markets SAR flips constantly and is one of the worst-performing signals available; it must be paired with a trend filter.
  • The stop trails at a formula-driven distance that ignores support and resistance, so exits can be either too tight or too loose for the structure.