Parabolic SAR Trading System: Intraday Live Signals and Excel Sheet

The Parabolic SAR Time/Price System was developed by J. Welles Wilder and was first featured in his book New Concepts in Technical Trading Systems in 1978. The Parabolic Time/ Price system derives its name from the fact that when charted, the pattern formed by the stops resembles a parabola. This system follows ‘Stop and Reverse’ methodology, which means that while trading this system, you would always hold a position in the market, either Long or Short. Therefore, whenever a stop loss is hit the position is reversed. That’s why each stop point is called SAR, which stands for Stop And Reverse. In this post we would explore a fully automated Parabolic SAR Excel sheet.

The system allows room for the market to react for the first few candles after a trade is initiated and then the stop begins to move more rapidly. The stop is not only a function of price but also a function of time. For example, if you are Long, the stop will move UP every day regardless of the direction the price is moving. The stop is related to price because the distance the stop moves up is relative to the favorable distance the price has moved.

Also Read: Parabolic SAR Trading System: Amibroker AFL

How to use Parabolic SAR for trading?

Parabolic SAR is incredibly simple to use. When imposed over a stock chart, it plots a series of dots either above or below the price line.

  • If PSAR dotted line is below the price, it indicates buy signal
  • If PSAR dotted line is above the price, it indicates sell signal
ParabolicSAR

Source: http://www.onlinetradingconcepts.com/

It works well in trending markets, and exhibits whipsaws during sideways market. Many traders also uses parabolic SAR as a stop loss indicator to exit their trade.

Parabolic SAR Excel Sheet- Calculations

Below are some of the important terminologies used for Parabolic SAR Calculation:

Previous SAR = Previous period’s SAR value.

Extreme Point (EP) = Extreme price reached in the direction of the current trend.

Acceleration Factor (AF) = Determines the rate-of-change of the SAR.

The calculations for Parabolic SAR and Parabolic SAR in uptrend and downtrend are different.

Parabolic SAR in Uptrend= Previous SAR + Previous AF(Previous EP – Previous SAR)

Parabolic SAR in Downtrend= Previous SAR – Previous AF(Previous SAR – Previous EP)

Parabolic SAR creates a parabola on the chart. When price in an uptrend breaks below the parabola (which will be below the trend), this signals a potential reversal of price. When price breaks above the parabola (which will be above the trend) during a downtrend, this can also signal a price reversal.

One aspect to consider is the Acceleration Factor (AF) that was mentioned in the calculation. The AF, which moves in user-defined increments, is a value which will determine the sensitivity of the SAR. AF increases as the trend continues in the same direction until it reaches its maximum value as defined by the user (usually 0.20). The lower the AF, the further away SAR is from price, therefore it is less likely to signal a stop or reversal, while a higher value for AF will make SAR more sensitive towards price and more likely to get hit. The default values suggested by Welles Wilder for AF increments and maximum AF are 0.02 and 0.20 respectively.

The parabolic SAR is generally plotted on a chart as a series of dots and these dots indicate where your stop loss should be at a given point of time. A small dot is placed below the price when the asset is in a general uptrend, while a dot is placed above the price when the asset is in a downtrend.

Also Read: Best Technical Analysis Courses for Beginners

Parabolic SAR Excel Sheet Overview

This is an automated macro-enabled spreadsheet which calculates Parabolic SAR value and Buy/Sell signals for the symbol entered. You need not to do anything manually.

See the below screenshots:

Parabolic SAR Excel Sheet

Parabolic SAR Excel Sheet 2

How to use this Excel Sheet

Step 1: Download the Excel file from the end of this post.

Step 2: Open this Excel file and make sure you are connected to the internet. Please accept if it asks to enable Macros and Data connections.

Step 3: Input the Symbol NameExchange NameIntervalNumber of Days, Minimum AF and Maximum AF

Step 4: Click on Get Data button. The data would be automatically downloaded and Parabolic SAR values would be calculated.

Download link for Parabolic SAR Excel Sheet

Please see the below link to download Parabolic SAR excel sheet. Let us know if you have any feedback or comments.

Parabolic SAR Trading System Excel Sheet

11 Comments

  1. Thanks for this sheet. Parabolic sar system works very good in trending markets. but lose during rangebound markets. how to get rid of it?

    • Hi Sane,

      Unfortunately Google finance has decommissioned their API which is causing this issue. We are yet to find a alternate solution.

        • Hi Manoj,

          Unfortunately google has discontinued its intraday data API since Aug 1st, due to which the excel sheet is unable to fetch realtime data. We are working on a alternate solution and will keep you updated. Thanks for your patience.

  2. hi sir

    this is chan share market trader and i have been seeing all your posts with respect to tools.. especially excel tools.. it is simple super..

    this is subject to PARA SAR excel tools which is notworking.
    please do the needul

    • Hi Chandru,

      Unfortunately google has discontinued its intraday data API since Aug 1st, due to which the excel sheet is unable to fetch realtime data. We are working on a alternate solution and will keep you updated. Thanks for your patience.

    • Hi San,

      Unfortunately google has discontinued its intraday data API since Aug 1st, due to which the excel sheet is unable to fetch realtime data. We are working on a alternate solution and will keep you updated. Thanks for your patience.

  3. May I know by when you will be coming out with alternative solution on intraday data API in excel?

    • Hi Mahesh,

      Unfortunately we do not have a date currently. Google was the only best source for intraday data, but it has discontinued it’s API

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