Parabolic SAR

Discussion in 'Technical Analysis' started by tradingboy, Jun 6, 2007.

  1. Any math people here?
    How to calculate parabolic SAR given an input data array?

    OK:
    SAR(i) = SAR(i-1)+ACCELERATION*(EPRICE(i-1)-SAR(i-1))
    Where:
    SAR(i-1) — is the value of the indicator on the previous bar;
    ACCELERATION — is the acceleration factor;
    EPRICE(i-1) — is the highest (lowest) price for the previous period (EPRICE=HIGH for long positions and EPRICE=LOW for short positions).

    The question is what to take as SAR(initial) ?

    Tradingboy
     
  2. Often in these situations people take the first price (close) N periods back.


     
  3. Thanks! Thats what I suspected. N periods back - meaning set N as a parameter? Or if I have N point size data array, this has to be the first element available?

    Tradingboy