CM_Parabolic SAR

The CM_Parabolic SAR indicator provides a visually enhanced version of the traditional Parabolic Stop and Reverse (SAR) system, offering color-coded signals to help traders identify trend direction and potential price reversal points at a glance.

Usage

The Usage of the CM_Parabolic SAR focuses on identifying the prevailing market trend and establishing dynamic trailing stop-loss levels. When price is above the SAR dots, the indicator plots green circles to signify an uptrend; when price is below the dots, it plots red circles to signify a downtrend.

Traders often use this tool to:

• Determine Trend Bias: A change in the position of the dots relative to the price action indicates a potential trend reversal.
• Trailing Stops: The dots move closer to the price over time as the trend accelerates, providing a logical level for stop-loss placement to protect profits.
• Signal Filtering: Users can toggle the visibility of the "Up Trending" or "Down Trending" components independently to focus on specific market conditions or directions.

Details

The indicator is constructed using the standard Parabolic SAR calculation, which utilizes an acceleration factor to follow price movements. This specific implementation scales the user inputs to match common trading configurations: the "Start" and "Step" inputs are multiplied by 0.01, while the "Maximum" input is multiplied by 0.10.

The script includes built-in alert functionality that triggers when the price crosses over or under the SAR value. A crossover (price moving above the SAR) indicates a reversal to an uptrend, while a crossunder (price moving below the SAR) indicates a reversal to a downtrend. These alerts are optimized to trigger once per bar close to reduce noise.

Settings

• Start - Default = 2: Determines the initial acceleration factor. This value is multiplied by 0.01 (e.g., a setting of 2 results in 0.02).
• Step Setting (Sensitivity) - Default = 2: Determines the increment of the acceleration factor as the trend reaches new highs or lows. This value is multiplied by 0.01.
• Maximum Step (Sensitivity) - Default = 2: Sets the upper limit for the acceleration factor. This value is multiplied by 0.10 (e.g., a setting of 2 results in 0.20).
• Show Up Trending Parabolic Sar: Toggles the visibility of the SAR dots during bullish phases.
• Show Down Trending Parabolic Sar: Toggles the visibility of the SAR dots during bearish phases.
• Start and Step settings are *.01...: A toggle used as a visual reminder for the internal multipliers applied to the input settings.

FAQ

What makes this different from the standard Parabolic SAR? This version enhances the default indicator by adding distinct color options for uptrends and downtrends, individual visibility toggles for each trend direction, and integrated alert triggers for trend reversals.

Can I use this indicator for automated alerts? Yes, the script includes pre-configured alert conditions that notify you when the SAR reverses its position relative to the price on the close of a bar.

How can I access CM_Parabolic SAR? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.