TREND INDICATOR
Parabolic SAR
An accelerating trailing reference designed for persistent moves.
Start with the input, not the story.
A price-following stop level that accelerates toward the current trend.
Plain-language formula
Prior SAR plus an acceleration factor multiplied by the distance to the extreme point.
Platform implementations can differ in price input, smoothing, indexing and rounding. Record the exact settings and provider before comparing results.
03 / USEFUL REGIME
Where it may help
Rule-based trailing exits in directional regimes.
04 / WEAK REGIME
Where it struggles
Ranges, where it flips rapidly and repeatedly.
Add a different measurement.
ADX / DMIStructureATR
A complementary tool should answer a different question, such as volatility, regime or position risk. Test the base rule before testing the combination.
The shortcut to avoid
Using every dot flip as an entry.
A testable next step
Evaluate it as an exit before evaluating it as a direction signal.