TickAtlas
trend 10 min read Updated 2026-03-21

Parabolic SAR (SAR)

The Parabolic Stop and Reverse indicator places dots above or below price to indicate potential reversal points. It provides trailing stop levels and trend direction.

TL;DR

  • SAR is a trend indicator used in technical analysis
  • Dots below price indicate uptrend; dots above indicate downtrend. When price crosses through dots, the trend reverses.
  • Best timeframes: H1, H4, D1
  • Skip to API docs →

What is Parabolic SAR?

The Parabolic Stop and Reverse indicator places dots above or below price to indicate potential reversal points. It provides trailing stop levels and trend direction.

How SAR is Calculated

formula 
SAR(n+1) = SAR(n) + AF × (EP - SAR(n))

AF = Acceleration Factor (starts 0.02, max 0.20)
EP = Extreme Point (highest high or lowest low)

How to Interpret SAR

Dots below price indicate uptrend; dots above indicate downtrend. When price crosses through dots, the trend reverses.

Trading Strategies Using SAR

Strategy 1: SAR Trailing Stop

Use SAR dots as a dynamic trailing stop level for existing positions.

Entry Rules

Enter based on other indicators. Place stop loss at the current SAR level.

Exit Rules

Exit when price touches or crosses the SAR dot. Move stop to each new SAR level.

Combining SAR with Other Indicators

SAR works best when combined with complementary indicators:

  • SAR + ADX: Combine for stronger confluence signals
  • SAR + ATR: Combine for stronger confluence signals
  • SAR + MACD: Combine for stronger confluence signals

SAR Across Different Timeframes

SAR works across all 7 timeframes but performs best on H1, H4, D1 for most trading styles.

H1 H4 D1

Learn about all 7 timeframes →

Accessing SAR via TickAtlas API

GET https://tickatlas.com/v1/indicator

Python Example

python 
import requests

url = "https://tickatlas.com/v1/indicator"
headers = {"X-API-Key": "YOUR_API_KEY"}
params = {
  "symbol": "EURUSD",
  "indicator": "Parabolic_SAR",
  "timeframe": "H1"
}

response = requests.get(url, headers=headers, params=params)
data = response.json()
print(data)

Sample Response

200 OK 
{
  "symbol": "EURUSD",
  "indicator": "Parabolic_SAR",
  "timeframe": "H1",
  "timestamp": "2026-03-21T14:00:00Z",
  "value": 58.43,
  "signal": "neutral"
}
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Common Mistakes to Avoid

  1. 1

    Using SAR as an entry signal in ranging markets — it whipsaws frequently

  2. 2

    Not combining SAR with a trend filter like ADX to avoid false signals

Frequently Asked Questions

Is Parabolic SAR good for stop losses?

Yes, SAR is excellent for trailing stops in trending markets. It automatically tightens as the trend progresses. Use it with ADX > 25 to confirm the trend first.

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