Parabolic SAR
Parabolic SAR (SAR) - A trend indicator that indicates price stop and reversal points, as well as the trend direction.
To use the indicator, the ParabolicSar class should be used.
Indicator Calculation
The price of the indicator point (SAR) for the next period (candle) is calculated using the following formulas:
SAR(n+1) = SAR(n) + a * (high � SAR(n)), for an uptrend;
SAR(n+1) = SAR(n) + a * (low � SAR(n)), for a downtrend, where:
SAR(n+1) � price for the period n+1;
SAR(n) � price for the period n;
high and low � new maximum and minimum respectively (extremes). They are considered for the time interval between the activation of the previous indicator signal and the current moment;
a � acceleration factor.
The acceleration factor is a floating coefficient, characterized by minimum, maximum values, and a step of change.
The factor takes a minimum value equal to one step at the reversal point, and as soon as the price reaches a new extreme value according to the trend (high or low), the factor is increased by a step. When the factor reaches its maximum value, its growth is paused.