where to find parabolic sar settings info

Discussion in 'Trading' started by qwert, Dec 21, 2008.

  1. qwert


    cant find info on what the parabolic sar settings mean when u are interested in adjusting them. so the standard is .02,.2,.02, dont know what happens when u adjust each.

    is there a good web page that explains each indicator and what the settings represent? thanks
  2. MGJ


    Parabolic was created by Welles Wilder and revealed in his 1978 book

    Wilder says: "The Parabolic Time/Price System derives its name from the fact that when charted, the pattern formed by the stops resembles a parabola, or if you will, a French Curve. The system allows room for the market to react for the first few days after a trade is initiated and then the stop begins to move rapidly ....

    The heart of the Parabolic calculation is the "AF" (acceleration factor), which grows each day until a value of 0.20 is reached. Then AF remains fixed at the constant value 0.20, and Parabolic becomes a standard, but tight, trailing stop. Wilder shows this in his very first chart of Parabolic. He even draws a straight line through the stop points, showing that he knows it's not mathematically parabolic:
  3. qwert


    thank u so much for the effort