Parabolic SAR System : Automated Trend and Level Tracking

Our platform offers a suite of specialized tools designed to assist in evaluating short-term trends across various financial assets.

It integrates the Parabolic SAR indicator, enabling the anticipation of short-term trend changes, as well as automatically generated support and resistance levels. These features are complemented by an automated trend analysis system, with alerts based on mathematical model detecting significant volatility movements.

Trading day of : 01/24/2025
decoEURUSD
decoSP500
decoHANG SENG
decoCAC40
decoNIFTY 50

What is Parabolic SAR?

The Parabolic SAR (Stop and Reverse), developed by American technical analyst J. Welles Wilder in 1978, is a trend-following indicator primarily used to identify potential market reversal points. In fact, the Parabolic SAR helps determine when a bullish or bearish trend might reverse, allowing for better risk management and decision-making regarding entry or exit points.

How the Parabolic SAR Indicator Works

The Parabolic SAR appears on a chart as points positioned above or below the candlesticks (or price bars). When the Parabolic SAR points are below the prices, it generally indicates an uptrend. Conversely, when the points are above the prices, it indicates a downtrend. The moment the Parabolic SAR moves from below to above the price (or vice versa), it signals a potential trend reversal. This change in position of the points can be interpreted as a buy or sell signal.
When the price reaches a new extreme point (for example, a higher high in an uptrend), the acceleration factor increases, making the SAR more responsive to price changes. This allows the indicator to track the price more closely, but also makes it more sensitive to trend reversals.