The Parabolic SAR is a technical analysis indicator developed by J. Welles Wilder that helps identify trend reversals and establish entry and exit points for trading. The SAR is visually represented as a series of points positioned above or below price, depending on the direction of the trend.

In essence, this indicator is similar to the moving average, the only difference being that the Parabolic SAR moves at a more accelerated pace and can change its position relative to price. In the case of an upward trend, the indicator is below prices, while in the case of a downward trend it is above them.

Using Settings

Clicking on the indicator settings icon will open its configuration window, within which you can make several choices regarding the indicator's functionality.

Parameters

In the Parameters section you can change the indicator inputs:

• Step: The acceleration factor that determines how quickly the SAR catches up to the price (default: 0.02)

• Maximum: The maximum acceleration factor value that can be reached (default: 0.20)

Subgraphs

In the Subgraph section, you can change the colors and style of the indicator:

• Parabolic SAR Color: Set the color of the SAR points

• Secondary Color: Set an optional secondary color

• Subgraph Style: Choose the display style 

• Line Style: Define the line style 

• Line Width: Define the width of the indicator display

• Use Secondary Axis: Option to display on a secondary axis