A Flat-Market Indicator Using Directional Movement and Parabolic SAR

Summary

This indicator aims to mark possible transitions into and out of range-bound conditions using the directional indicators DI+ and DI− alongside Parabolic SAR. It compares the SAR position with the close and checks which directional indicator is greater, assigning the resulting combinations to four separate histogram states. The settings shown use a 14-period directional calculation and standard SAR parameters, though users may adapt them.

The document presents the indicator as a conversion from an MT4 version into ProRealTime syntax. It provides implementation logic but no chart examples, trading rules, validation, or performance evidence. The stated purpose is to help identify possible flat-trend boundaries; the described comparisons alone do not establish that a market is ranging or that a signal is predictive. Users would need to test its behavior across instruments and market conditions before relying on it.

Key ideas

• The indicator combines DI+ and DI− comparisons with Parabolic SAR relative to the closing price.
• Four combinations of directional dominance and SAR position produce separate histogram states.
• The example uses a 14-period directional calculation and specified SAR parameters.
• The document offers code but no evidence that the states reliably identify range boundaries.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.