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
http://www.linnsoft.com/tour/techind/sar.htm http://www.incrediblecharts.com/technical/parabolic_sar.php http://www.metaquotes.net/techanalysis/indicators/parabolic_sar http://www.interactivebrokers.com/php/webhelp/Technicals/parabolicSar.htm I do not see a squared term in the equation. Parabolic SAR is not parabolic.
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: