SAR Indicator .... do you have the necessary software ????

BarNov

Member
52 0
If so .... would it possible for someone to post a chart of the FTSE250 and Small Cap with the SAR indicator included on the chart.

Why ????

Well Titus mentioned this indicator as part of my indexicator threads on the Market Indices.... and I would like to see what it looks like against the indices that I'm monitoring ... as Sharescope doesn't include this indicator.

Thanks in advance

Paul.

ps do you also know what the mathematical calculation is behind this indicator ????
 

titus-uk

1
291 5
Hope this helps....

As you know I am a big fan of SAR. However, I am not able to post an O chart here (not enough of a wizzkid you know!) However, it s construction is as follows:

IF:
EP = highest high (or lowest low if short)

AF = acceleration factor

Step = acceleratioon factor increment

Max = acceleration factor maximum

SARi = stop and reverse value for bar"i"

Then:
SAR! = EP for the prev. trade
SAR2=SAR1 + AF*(EP2-SAR!)
if AF<Max then AF=AF+Step
SAR3=SAR2+AF*2(EP2-SAR2)
if AF<Max then AF=AF+ Step
SARi=SARi-1 + AF*i-1*(EPi-1 - SARi-1)
if AF<MAx then AF=AF + Step

this continues until price penetrates SAR, at which point AF and SAR reset and the process starts over.

Parameters:
SAR Step (Step): the initial value of AF and the value of Step in the formulae is typically 0.02

SAR maximum (MAX): the value of maxin the formulae is typically 0.2.


Hope this helps. By the way, the interactive charting site on FTmarketwatch.co.uk has this facility (though not in pretty colours!!) - haven't checked for indices though.

Mark
 

Austrader

Junior member
11 0
I don't know if this will work, but I've attached a copy of the FTSE100 with a Parabolic SAR applied. Straight from my Metastock program.

Cheers,

Austrader
 

Attachments

ChartMan

Legendary member
5,580 46
SAR will work over the longer term, but hates "whipsaws". In strong trending stocks, it works very well, if you have the bottle to trust it and execute it!
 

Austrader

Junior member
11 0
Agree,

It's important for traders to understand groupings of indicators.

Whereas there are brilliant oscillators for ranging markets, so to are there excellent lagging indicators for trend based markets such as Parabolic SAR.

For example, note how well stochastic crossovers work in a currently ranging SHEL.

Austrader
 

Attachments

titus-uk

1
291 5
I find that by using a trend signalling indicator such as Random walk Index Breakout compliments the use of SAr. I also combine these with a volatility indicator, and a MACD (optimized), and find that when a series of buy signals are generated by all 4 systems, the chance of an uptrend is high.

Misses the start of trends, but if I can make an average of 5% per trade, then I will not be working until I'm 65!!!

Mark
 

bruverton

Newbie
2 0
Trader Idea Alerts

I don't know if this will work, but I've attached a copy of the FTSE100 with a Parabolic SAR applied. Straight from my Metastock program.

Cheers,

Austrader
Hi Austrader,

A bit of a different subject, but im looking for some software that will scan the UK market and high light Trade-Idea alerts in real time i.e....which equities are
*crossing resistance areas/new highs, support levels/lows,
*diverging from their sector or index,
*and/or trading at high relative volume. i.e equities that are doing 1000% normal vol.

Any help would be much appreciated.
 
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