What is Parabolic SAR Indicator? Forex market trading indicators

What is Parabolic SAR Indicator?

      Parabolic SAR Indicator was used for analyzing the market trend. This indicator is same as Moving Average Indicator. The main different is that Parabolic SAR moves with higher increase of rate and may change its position in terms of the price. The indicator will come below in the bull market, when market is bearish then indicator move above.

     The Parabolic SAR indicator value increases if the price of the current candle is higher than previous bullish candle and associate versa. Increase of rate factor will double similarly, which would cause Parabolic SAR and the price to come together.

Parabolic SAR Calculation:

           SAR (i) = SAR (i-1) +ACCELERATION*(EPRICE (i-1)-SAR (i-1))

SAR (i-1) - value of the indicator on the previous bar.
ACCELERATION - Acceleration factor.
EPRICE (i-1) - highest price for the previous period.