Theory:
The Parabolic SAR (Stop and Reverse) is a popular technical indicator calculated using the high and low prices of an asset. This tool offers traders the flexibility to:
- Utilize any price point (not just high and low)
- Employ an average price rather than relying solely on raw price data
Usage:
This indicator can be used just like a traditional SAR. You might find some intriguing results by applying the same price for both high and low—like using the closing price for both, as demonstrated in the second example below:
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