Parabolic SAR Swing Entries with Trailing Stops

Summary

This swing method uses Parabolic SAR to identify the prevailing direction and manage exits. A candle closing above SAR is treated as long-side and colored blue, while a candle below SAR is treated as short-side and colored red. The accompanying description proposes entering after a directional candle closes following an SAR swing, then trailing a stop at the changing SAR dots. A trade exits when that stop is reached. Gray candles are excluded as entry signals.

The included code primarily constructs and colors candles according to their relationship to SAR and their open-close direction. It does not implement order placement, stop updates, or exit handling, so the trading rules are described rather than fully coded. The document offers no backtest, instrument guidance, or performance results. Parabolic SAR can change behavior across settings and market regimes, and the notes do not specify parameters or how to handle gaps and execution costs.

Key ideas

• Parabolic SAR position relative to price defines the directional bias.
• The described entry follows a directional candle after an SAR swing and occurs after its close.
• The proposed stop trails the SAR dots, with exit when the stop is hit.
• Gray candles are designated as non-signals.
• The code colors candles but does not implement the complete trading and risk-management process.

Tags

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