Trend · TickAtlas Learn

Parabolic SAR (SAR)

The Parabolic Stop and Reverse indicator places dots above or below price to indicate potential reversal points. It provides trailing stop levels and trend direction.

10 min readUpdated 2026-03-21Trend

SAR · quick spec

GET /v1/indicator ?symbol=EURUSD&indicator=SAR&timeframe=H1

Family: Trend
Series: Single series
Best timeframes: H1 · H4 · D1
Last updated: 2026-03-21

TL;DR

SAR is a trend indicator used in technical analysis
Dots below price indicate uptrend; dots above indicate downtrend. When price crosses through dots, the trend reverses.
Best timeframes: H1, H4, D1
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Understand

What is Parabolic SAR?

The Parabolic Stop and Reverse indicator places dots above or below price to indicate potential reversal points. It provides trailing stop levels and trend direction.

Calculate

How SAR is calculated

formula

SAR(n+1) = SAR(n) + AF × (EP - SAR(n))

AF = Acceleration Factor (starts 0.02, max 0.20)
EP = Extreme Point (highest high or lowest low)

Interpret

How to interpret SAR

Dots below price indicate uptrend; dots above indicate downtrend. When price crosses through dots, the trend reverses.

Apply

Trading strategies using SAR

Strategy 1: SAR Trailing Stop

Use SAR dots as a dynamic trailing stop level for existing positions.

Entry rules

Enter based on other indicators. Place stop loss at the current SAR level.

Exit rules

Exit when price touches or crosses the SAR dot. Move stop to each new SAR level.

Combine

Combining SAR with other indicators

SAR works best when combined with complementary indicators:

SAR + ADX: Combine for stronger confluence signals
SAR + ATR: Combine for stronger confluence signals
SAR + MACD: Combine for stronger confluence signals

Timeframes

SAR across different timeframes

SAR works across all 7 timeframes but performs best on H1, H4, D1 for most trading styles.

H1H4D1

Learn about all 7 timeframes

Query

Accessing SAR via the TickAtlas API

GET https://tickatlas.com/v1/indicator

Python example

python

import requests

url = "https://tickatlas.com/v1/indicator"
headers = {"X-API-Key": "YOUR_API_KEY"}
params = {
  "symbol": "EURUSD",
  "indicator": "SAR",
  "timeframe": "H1"
}

response = requests.get(url, headers=headers, params=params)
data = response.json()
print(data)

Sample response

200 OK

{
  "success": true,
  "data": {
    "symbol": "EURUSD",
    "indicator": "SAR",
    "timeframe": "H1",
    "value": 1.0832,
    "updated_at": 1711548000,
    "server_time": "2024-03-27T14:00:00+00:00",
    "bid": 1.0856,
    "ask": 1.0857
  }
}

Get an API key Full API reference

Avoid

Common mistakes to avoid

Using SAR as an entry signal in ranging markets — it whipsaws frequently
Not combining SAR with a trend filter like ADX to avoid false signals

FAQ

Frequently asked questions

Is Parabolic SAR good for stop losses?

Yes, SAR is excellent for trailing stops in trending markets. It automatically tightens as the trend progresses. Use it with ADX > 25 to confirm the trend first.

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