Parabolic SAR (Stop and Reverse)
The Parabolic SAR is a trend-following indicator that provides potential entry and exit points. It plots dots above or below the price — below during uptrends, above during downtrends — and "flips" when the trend reverses.
How it works: SAR starts with an initial acceleration factor that increases each time a new high (in an uptrend) or low (in a downtrend) is made, up to a maximum value. This causes the dots to accelerate toward price, eventually triggering a reversal.
Settings in block algo flex
| Setting | Description | Default |
|---|---|---|
| Use Parabolic SAR? | Enable/disable the indicator | Off |
| InpSar_start | Starting acceleration factor | 0.02 |
| InpSar_increment | Acceleration factor increment per bar | 0.02 |
| Max Value | Maximum acceleration factor cap | 0.2 |
| Timeframe | Timeframe for calculation | Chart |
| Buy Condition | Triggers when price crosses above SAR dots | Crossover |
| Sell Condition | Triggers when price crosses below SAR dots | Crossunder |
How to Interpret
- Dots below price — Uptrend; SAR acts as a trailing stop-loss level
- Dots above price — Downtrend; SAR acts as a trailing stop-loss level
- Flip from above to below — Potential buy signal (trend reversal to bullish)
- Flip from below to above — Potential sell signal (trend reversal to bearish)
Pro Tip: The Parabolic SAR excels in trending markets but generates frequent false signals in sideways conditions. Pair it with ADX (only trade SAR flips when ADX > 25) for much cleaner signals.