Description

• J. Welles Wilder Junior defined parabolic SAR which was named after the pattern of its stops during runaway moves which resembled a parabola
• Plots a parabolic curve of the difference between the close line value and the parabolic SAR of the high, low and close values

Interpretation

• If the parabolic SAR difference is +ve, it indicates uptrend
• If the parabolic SAR difference is -ve, it indicates downtrend

Default Parameters Used/Inputs

• High Line
• Low Line
• Close Line
• Initial
• Increment
• Maximum

Returns/Output

Parabolic SAR difference of the stock

Formula

PSARDiff[X]=C[X]-PSAR(H[X], L[X], C[X], Ini,Incr,Max)
where H,L,C indicate High, Low and Close