Parabolic SAR Thresholds for a Dynamic ZigZag Channel

Summary

This indicator description explains a ZigZag channel whose threshold moves with the Parabolic SAR instead of remaining fixed. It draws an analogy to trailing stops: as the Parabolic SAR level changes, the channel boundary adjusts, potentially tracking changing price movement more responsively than a static threshold.

The indicator uses the standard Parabolic SAR Step and Maximum inputs, with an additional minimum channel-width setting in points intended to filter out very narrow channels. The document says the indicator was first implemented in MQL4 and published in 2009. It provides no trading rules, market tests, or performance evidence, so it explains the construction and settings rather than establishing when the channel is useful. Results may depend on parameter choices and instrument characteristics; the minimum-width filter also excludes some market conditions by design.

Key ideas

• The channel uses a moving threshold derived from Parabolic SAR rather than a fixed ZigZag threshold.
• Its behavior is analogous to a trailing stop whose level changes with price movement.
• Users set the Parabolic SAR Step and Maximum parameters.
• A minimum width in points filters out narrow channels.
• The description gives no trading evaluation or evidence of profitability.

Tags

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