What it measures
Parabolic SAR plots dots below price in an uptrend and above it in a downtrend. The dots accelerate towards price as the trend continues and flip side when price crosses them.
Practise without risk $50,000 in virtual funds. No deposit. Try a $50,000 demo account Affiliate link. High risk of losing money.
Starting settings by expiry
| Expiry | Settings | Signal |
|---|---|---|
| 5 min | Step 0.02, max 0.2 on 1-min candles | Dot flip in trend direction |
| 15 min | Step 0.02, max 0.2 on 5-min candles | Dot side as filter |
Starting points for testing on a demo account, not proven profitable settings.
How traders use it
- Use the side of the dots as a trend filter.
- A flip after a pullback inside a larger trend can mark the resumption.
Where it fails
- Flips constantly in sideways markets.
- Not useful on 1-minute expiries.
Works well with
- Exponential moving average (EMA) — Trend direction with more weight on recent prices.
- MACD — Trend and momentum from two moving averages.
FAQ
Can I use Parabolic SAR alone?
It is better as a filter alongside a moving average than as a stand-alone signal.
ExpiryLab Editorial Research desk We open broker accounts from our target countries, test deposits and withdrawals, and log what we measure.
How this page was made: drafted with AI assistance from public sources and our own test logs, then checked and edited by the ExpiryLab editorial team. The date above shows the last check. How we test · Editorial policy