FTB-C000387 / Indicator

Parabolic SAR

Parabolic SAR is a stateful trailing level that advances toward the active trend's extreme point and reverses when price penetrates the governed stop.

Also known asPSARParabolic Stop and Reverse

Advanced 1 linked topicEvidence-reviewed

Definitions

In plain terms

Its curvature changes as new extremes increase the acceleration factor.

Technical

The implementation freezes seed direction, initial SAR and EP, AF step and cap, candidate order, prior-bar clamp, penetration strictness, reversal publication, and resets.

Scope

It is not a fitted parabola and does not guarantee an executable stop price.

Examples

  • A governed lesson calculates or identifies Parabolic SAR only after its parameters, state, timing, and edge cases are declared.

Common misconceptions

  • It is not a fitted parabola and does not guarantee an executable stop price.

Concept relationships

Prerequisites

Related

Where this concept is used

Evidence and governance

  1. TA-Lib Parabolic SAR Implementation TA-Lib · first party technical publication

    Supports: preferred label, short definition, technical definition

    Limits: Initial direction and extended-SAR options differ across implementations and must be declared.

  2. New Concepts in Technical Trading Systems J. Welles Wilder Jr. · first party methodology

    Supports: historical attribution

    Limits: The bibliographic page alone is not an executable specification; equality, seeds, and state transitions require pinned rules.

Reviewed by
fintech-builder-batch-007
Last reviewed
2026-07-27
Next review
2027-07-27
Record status
evidence reviewed

This record is evidence-reviewed and readable, but not yet promoted to published — it is served noindex,follow and excluded from the sitemap.