✓ Mathematical
◆ The PatternSAR = prior SAR + AF × (EP − prior SAR).
The Parabolic Stop and Reverse — Wilder's trend-following trailing stop system.
SAR = Prior SAR + AF × (EP − Prior SAR)
AF starts at 0.02, increments by 0.02 each new EP, max 0.20
EP = Extreme Point (highest high or lowest low in current trend)
AF starts at 0.02, increments by 0.02 each new EP, max 0.20
EP = Extreme Point (highest high or lowest low in current trend)
Visual: Dots below price = uptrend. Dots above = downtrend. When price touches the SAR dot, flip direction.
Best for: Trending markets. In sideways markets, SAR generates frequent whipsaws.
Best for: Trending markets. In sideways markets, SAR generates frequent whipsaws.
Pattern bridge: SAR’s acceleration factor increases with each new extreme — the same momentum accumulation used in gradient descent.