A Parabolic SAR Indicator Driven by Moving Average Levels

Summary

This brief description presents a variation on the Parabolic SAR indicator. Instead of using market high and low prices in the SAR calculation, it substitutes values from a moving average. Under this construction, the indicator’s direction changes when its SAR value reaches the moving average, rather than when it touches a price extreme.

The document gives only the central idea and says that a result is shown, but provides no chart, parameter settings, formula, test period, or performance evidence in the available text. It therefore explains a possible way to smooth or redefine SAR reversal behavior, not a complete trading system. It does not establish whether the modified indicator reduces false reversals, improves timing, or works across markets; those questions would require explicit implementation details and testing.

Key ideas

• The indicator replaces high and low prices in the SAR calculation with moving average values.
• Its direction changes when the SAR reaches the moving average.
• The document does not specify the moving average settings or provide a reproducible formula.
• No backtest or comparative performance evidence is included.

Tags

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