Stock Meadow · Metric glossary · Price trend
Parabolic SAR Trend: formula and how to read it
The Parabolic SAR (stop and reverse), another J. Welles Wilder indicator, plots a dot that trails the price: below it in an up-trend and above it in a down-trend. When the price crosses the dot, the trend flips and the dot jumps to the other side.
What is Parabolic SAR Trend?
1 when the Parabolic SAR sits below the price (up-trend), -1 when above (down-trend). Wilder's Parabolic SAR trails the price, below it in an up-trend and above it in a down-trend, and flips when the price crosses it. This is +1 for an up-trend and -1 for a down-trend on the latest day, so filter on Above 0 for up-trends.
Stock Meadow groups it under Price trend, and shows it in tables as PSAR trend.
Formula and a worked example
SAR(next) = SAR + acceleration × (extreme price − SAR); the acceleration starts at 0.02 and rises by 0.02 with each new extreme, up to 0.20. Stock Meadow shows +1 when the SAR is below the price and −1 when above.
A stock climbing for weeks with the SAR dot below the price reads +1. On the day it falls through the dot, the reading flips to −1. The numbers are made up for illustration.
How to read it
+1 means the indicator sees an up-trend on the latest day and −1 a down-trend. The dot accelerates toward the price, so trends that stall flip quickly. It is a filter only: use Above 0 for up-trends.
It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.
Common pitfalls
- In sideways markets it flips back and forth, a pattern traders call whipsaw.
- It describes the current state, not what comes next.
- Needs at least two trading days of prices, but readings from a short history are unreliable.
How Stock Meadow handles gaps. Usually blank when there are fewer than two days of prices.
Treat any single metric as one clue, and read the company's financial statements before drawing a conclusion. Stock Meadow's figures are research tools based on reported data, not investment advice.
Stock Meadow models that use it
No scoring model uses it. It is a filter and a table column only.
Read about every scoring model in How scores work.
Frequently asked questions
- What does the Parabolic SAR show?
- It marks where a trailing stop would sit if you followed the trend: below the price in an up-trend and above it in a down-trend, flipping when the price crosses it.
- Can I score stocks on PSAR trend?
- It can be used as a filter and as a column, but not for scoring: it describes a company rather than making it better or worse.
- Why is PSAR trend blank for some stocks?
- It is usually blank when there are fewer than two days of prices. Stock Meadow leaves the figure blank rather than guessing it.
Use PSAR trend in Stock Meadow
Filter the whole stock list on Parabolic SAR trend and show it as a column in the stock screener. Sign up free, no card needed.
Open the stock screener