Trend Indicator Combining Parabolic SAR and a Moving Average

Summary

This brief description introduces a trend indicator built from Parabolic SAR and a moving average. It assigns SAR the role of the faster line and the moving average the slower signal line, with their relationship presented as an indicator cloud. The concept uses the interaction between a responsive price-following measure and a smoother trend measure to represent direction.

The document offers no parameter choices, entry or exit rules, chart explanation, test results, or risk guidance. It is therefore an outline of the indicator's construction rather than a complete trading method. It does not establish whether the combined signal improves on either component alone, or how it behaves in ranging markets and across instruments or timeframes.

Key ideas

• The indicator combines Parabolic SAR with a moving average to represent trend.
• SAR serves as the faster line, while the moving average serves as the slower signal line.
• The description gives no parameters or rules for translating the indicator into trades.
• No performance evidence or guidance for handling sideways markets is provided.

Tags

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