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INDICATOR · BEGINNER GUIDE

PARABOLIC SAR

Dots that follow the trend: under price going up, over price going down, and they flip when it turns.

◆Classic Wilder dots◆Under ▲ / over ▼ price◆Flips marked◆ADX strength dial
Parabolic SAR on a live chart WHAT YOU SEE · EURUSD 1H · 20–30 OCT 123456
1Green dots: under price, so the trend is up.
2Red dots: over price, so the trend is down.
3Arrow: price touched the dots and they flipped.
4Speeding up: the dots close in on price as a move goes on.
5Many flips: a sideways market. The dots give false turns here.
6Latest dots: where the trailing stop would sit now.

Use it in 5 steps

  1. Switch it onCharts → Basic Indicators (ƒx) → tick Parabolic SAR.
  2. Read the sideDots under the candles = uptrend. Dots over them = downtrend.
  3. Watch for a flipWhen price touches the dots, they jump to the other side.
  4. Check the ADX dialUnder 20 = weak or sideways, flips less reliable. Over 25 = a strong trend.
  5. Use it as a guideMany traders trail a stop on the dots. Confirm with the bigger trend.

Down, then up on EURUSD

Down, then up on EURUSD

EURUSD 1H, 26–30 Oct. Red dots trailed the fall for two days, flipped green as price turned up, then flipped back red near the top on 30 Oct.

The dashboard

The dashboard

  • Trend: up (dots under price) or down (dots over price).
  • Dots now / last flip: where the dots are, and when they last changed side.
  • Flips in last 100: lots of flips means a choppy, sideways market.
  • ADX dial: trend strength. Under 20 weak, over 25 strong, when the dots work best.
  • What this means: the reading in plain English.

Golden rules

  • A trend tool, not a signal. A flip is not a reason to trade on its own.
  • Sideways markets fool it: the dots flip back and forth.
  • Higher settings flip more. The defaults are 0.02, 0.02 and 0.2.
  • Always use a stop loss and risk 1% or less per trade.
🔔 Get told when it fires: click Alerts, choose Parabolic SAR and tick “Parabolic SAR flipped up” or “flipped down”.
BEYOND THE MARKETS
beyondthemarketstrading.com · Indicator guide 38: Parabolic SAR
For education only, not financial advice. Past behaviour does not guarantee future results. Trading carries risk.

For educational purposes only. The results in this guide come from testing on past prices. Past performance does not guarantee future results, and real spreads, slippage and delays can make results worse. Nothing here is financial advice, and trading carries a high risk of losing money. Read the risk warning.