top of page

Indicator:

Parabolic SAR

Parabolic SAR (Stop and Reverse) is a trend-following indicator that tracks price direction and signals potential reversal points by placing dots above or below price bars. When the trend is upward, dots appear below the price, and when it is downward, dots appear above. This characteristic makes Parabolic SAR useful for setting stop-loss levels and refining exit strategies, allowing traders to manage their trades effectively and capitalize on trend reversals in dynamic market conditions.

Parabolic SAR Indicator


Type of Indicator

The Parabolic SAR (Stop and Reverse) is a trend-following indicator that helps traders identify potential price reversal points and trend endings. It is particularly useful for detecting dynamic market trends. This indicator was developed by J. Welles Wilder, who also created other popular technical analysis tools like the RSI and ATR.


Purpose

The primary purposes of the Parabolic SAR indicator are:

  • Identifying the direction of the trend,

  • Determining potential price reversal points,

  • Setting stop-loss levels.


Calculation Method

The calculation of the Parabolic SAR involves several steps, which are more complex than many other indicators:

Parabolic SAR in an Uptrend (Bullish):
  • In an uptrend, the SAR is calculated by adding to the previous SAR a value which is the product of the acceleration factor (AF) and the difference between the highest price point (EP) in the current trend and the previous SAR.


Parabolic SAR in a Downtrend (Bearish):
  • In a downtrend, the SAR is calculated by subtracting from the previous SAR a value which is the product of the acceleration factor (AF) and the difference between the lowest price point (EP) in the current trend and the previous SAR.


Acceleration Factor (AF):
  • The AF starts…

Prop trading firms that focus on futures grant traders capital access after passing certain trading assessments. Covering a wide range of instruments, including commodities and indices, they offer traders the chance to speculate on global market movements. With comprehensive resources such as educational courses, high-quality trading platforms, and professional guidance, these firms empower traders to optimize their strategies and improve trading outcomes.

Leading Prop Firms for Futures Trading Enthusiasts

logo_288x162_xm.png
Alpha Futures offers futures trading with substantial capital, profit splits up to 90%, and rigorous risk management. Join with a capital allocation of up to $450K.

Instruments:

CME

Platforms:

AlphaTicks
logo_288x162_xm.png
Purdia Capital offers professional futures trading with various account types, up to 90% profit split, and a strong risk management system. Start trading with proven platforms.

Instruments:

CME, COMEX, CBOT, NYMEX

Platforms:

Tradovate, TradingView, NinjaTrader
logo_288x162_xm.png
Savius offers instant funding for futures traders, with profit shares up to 80% and accounts up to $300K. Trade on CME, CBOT, NYMEX with advanced platforms.

Instruments:

CME, COMEX, CBOT, NYMEX

Platforms:

Atas, Quantower, Volsys, Volbook

Traders seeking to improve their technical analysis rely on tools like MetaTrader, TradingView, and Forex Factory. These platforms offer features such as customizable charting, algorithmic strategy development, and economic calendar integration. They cater to various markets, including forex, futures, and indices, providing valuable insights that guide trading decisions. By combining user-friendly interfaces with sophisticated analytical tools, they help traders identify trends and optimize their strategies.

Top-Rated Trading Tools for Technical Analysis

Trading Central offers advanced technical analysis, real-time market data, and comprehensive insights into financial instruments. It helps traders efficiently identify patterns and potential trading opportunities, making informed decisions based on reliable data and expert analysis.
Myfxbook Economic Calendar helps investors track key economic events and analyze their potential impact on financial markets. It offers detailed event descriptions and historical data, enabling traders to anticipate market reactions and make better-informed trading decisions.
Autochartist identifies technical patterns in real-time, offering traders alerts and detailed analyses to optimize investment decisions. It provides a variety of pattern recognition tools that help traders anticipate market movements and react swiftly to changing conditions.
Yahoo Portfolio & Tracker allows investors to manage portfolios, access real-time data, and utilize advanced analytical tools for making informed investment decisions. It provides a user-friendly platform to track market trends, news, and individual stock performance comprehensively.
Forex Factory Traders provides detailed analytics and a social platform for currency traders to share strategies, track performance, and discuss market trends. It fosters a community where traders can learn from one another and improve their trading tactics through collective insights.
TradingView Ideas lets traders share market analyses and strategies, fostering knowledge exchange and enhancing trading skills through active community interaction. It serves as a valuable platform for users to discuss trading ideas, study market trends, and follow experienced traders' recommendations.

Stock brokers connect investors to companies listed on global stock exchanges, enabling access to a variety of sectors and industries. These brokers offer a suite of tools, including advanced trading platforms, research reports, and educational content, to help investors make informed decisions. By diversifying their portfolios and managing risks, investors can aim for long-term growth while capitalizing on opportunities for capital gains and dividend income. The brokers’ comprehensive services make investing accessible to traders of all experience levels.

Leading Brokers for Stock Market Enthusiasts

logo_288x162_xm.png
Lightspeed is a top broker for active stock traders offering low commissions and advanced platforms like Lightspeed Trader. Enjoy fast execution, flexible pricing, and access to major exchanges.

Instruments:

US Stocks: NYSE, NASDAQ, AMEX, OTC Markets

Platforms:

Lightspeed Trader, Eze EMS Pro, Eze EMS Express, Sterling Trader Pro, Sterling Vol Trader, SILEXX OEMS
logo_288x162_xm.png
Alaric Securities provides zero-commission US stock and options trading, along with access to NYSE and NASDAQ. Benefit from fast execution, advanced tools, and competitive rates on other markets.

Instruments:

US Stocks: NYSE, NASDAQ, AMEX, OTC Markets

Platforms:

Hammer Proâ„¢, Hammerâ„¢ Lite+, Hammerâ„¢ Lite, Sterling Trader Pro, Sterling LST
logo_288x162_xm.png
Ally Invest provides commission-free trading for stocks and ETFs, low-cost options at just $0.50 per contract, and powerful tools like real-time data and margin trading for both new and experienced investors.

Instruments:

US Stocks: NYSE, NASDAQ, AMEX, OTC Markets

Platforms:

Ally Invest Web Platform, Ally Invest Desktop, Ally Mobile App
bottom of page