Building a Parabolic SAR Reversal Signal with Bar Confirmation
Summary
The document describes an Expert Advisor that uses Parabolic SAR (PSAR) to detect possible reversals. A buy setup requires a bullish current bar with PSAR below its close, while the two preceding bars have PSAR above their closes; the sell setup reverses those conditions. It also checks that the preceding PSAR values are not separated by more than a configurable percentage of the current close. Inputs control PSAR sensitivity, the dot-gap limit, alerts, and chart arrows.
The EA is presented as a signal-detection and charting tool, with internal state for pending signals and a stored reversal level intended to help screen out false alarms. The document discusses implementation in MQL5 and testing, but the provided text does not include the test results, sample period, or performance statistics. The rules therefore describe a technical-indicator method rather than establishing that it is profitable. PSAR settings and the bar conditions can affect signal frequency and behavior, and the described reversal logic should be evaluated against the intended instrument and timeframe.
Key ideas
- A buy setup combines a bullish bar and PSAR below price with two preceding bars showing PSAR above price.
- A sell setup mirrors the buy conditions, requiring a bearish bar and PSAR above price after two bars with PSAR below price.
- A configurable gap limit filters setups based on the distance between consecutive PSAR values.
- The EA tracks pending signals and a reversal reference level as a way to seek additional confirmation.
- The available description provides no testing statistics to establish the strategy's performance.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.