Skip to main content

SAR

Type: sar • Category: indicators

Description​

Calculates SAR indicator based on high and low prices

Parameters​

NameTypeDescriptionRequiredDefault
dataExpstringprices datano
highstringselect the column with highest pricesno
lowstringselect the column with lowest pricesno
accelerationnumberAcceleration factor for SARno0
maximumnumberMaximum value for SARno0

Help​

SAR Indicator Worker

Overview​

The SAR (Stop and Reverse) indicator worker is a crucial tool in financial analysis, designed to determine the direction of price movement and provide potential entry and exit points for traders. This worker calculates the SAR indicator based on high and low prices, offering insights into market trends.

Description​

The SAR indicator, developed by J. Welles Wilder, is a trend-following indicator that plots a series of dots above or below the price chart. These dots represent potential stop-loss levels and can signal a change in the trend direction. The SAR indicator is particularly useful in identifying the direction of the market and providing a trailing stop-loss strategy.

How it Works​

The SAR indicator worker takes the following parameters:

  • dataExp: prices data
  • high: select the column with highest prices
  • low: select the column with lowest prices
  • acceleration: Acceleration factor for SAR
  • maximum: Maximum value for SAR

The worker calculates the SAR values based on the provided parameters and returns a series of dots that can be plotted above or below the price chart.

Interpreting the Results​

The SAR indicator can be interpreted as follows:

  • When the SAR dots are below the price chart, it indicates an uptrend, and the dots act as a trailing stop-loss level.
  • When the SAR dots are above the price chart, it indicates a downtrend, and the dots act as a trailing stop-loss level.
  • A change in the trend direction is signaled when the SAR dots switch positions relative to the price chart.

Usage​

To use the SAR indicator worker, simply provide the required parameters, and the worker will calculate the SAR values. You can then plot the SAR dots along with your price chart to visualize the trend direction and potential entry and exit points.

Example Usage​

// Example code snippet

Visualizing the SAR Indicator​

For a better understanding of how to use the SAR indicator worker, refer to the following GIFs:

Full GIF​

[![Full GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_full.gif)

Short GIF​

[![Short GIF](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)](https://pub-6c7cc7f707d94ca98153d59a039b9a3d.r2.dev/indicator_short.gif)

Additional Insights​

The SAR indicator is often used in combination with other technical indicators to confirm trading signals. It's essential to note that the SAR indicator can produce whipsaws during times of high market volatility, resulting in false signals. Therefore, it's crucial to use proper risk management techniques and combine the SAR indicator with other forms of analysis.

By incorporating the SAR indicator worker into your financial analysis, you can gain a better understanding of market trends and make more informed trading decisions.