Adapting Parabolic SAR to Average Prices
Summary
The document describes a variation of Parabolic SAR that allows the calculation to use a selected price series rather than relying only on high and low prices. It also permits an average of price values to be used in place of raw prices. This changes the inputs to the indicator while retaining its familiar role as a price-following signal.
The suggested usage is similar to that of a conventional SAR indicator. One example uses the closing price for both the high and low inputs, illustrating that the indicator can be driven by a single price series. The document says this setup may produce interesting results, but it supplies no chart, formula details, parameter values, performance statistics, or comparison with standard SAR. It therefore introduces a configurable indicator concept rather than establishing that average-price inputs improve signals or trading outcomes. Any practical evaluation would need to specify the averaging method and test the variant across instruments and market conditions.
Key ideas
- This Parabolic SAR variant can use selected price inputs beyond the standard high and low prices.
- It can calculate from an average price instead of raw price values.
- The indicator can be used in the manner of a conventional SAR.
- Using the close for both high and low is offered as an example configuration.
- No performance evidence or averaging specification is provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.