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FreeIndicators·ThinkorSwim

Parabolic SAR

Trailing stop-and-reverse dots for trend rides.

How to install in ThinkorSwim

  1. In ThinkorSwim, open a chart, then go to Studies → Edit Studies.
  2. Click Create, clear the editor, and paste the code.
  3. Name it, click Apply, then OK, and it draws on your chart.

How to Use — WeTradePro Parabolic SAR

Our colored, labeled take on the Parabolic Stop-And-Reverse. Educational, not advice.

What it is (one line)

A trailing-stop trend tool: dots ride under price in an uptrend and over price in a downtrend, and the side-switch is a built-in stop-and-reverse signal.

Who it's for & best timeframe

Trader typeHow you use itBest timeframeRecommended setting
Day traderTrail the dot as your hard stop on a runner5-min – 15-minaccelerationFactor 0.02
Swing traderBest fit — use the daily dot to trail a multi-day holdDailyaccelerationFactor 0.02, limit 0.2
Position traderWeekly dot = the line that defines the whole positionWeeklyaccelerationFactor 0.01 (slower)

Best overall: trending markets on the daily. SAR is a trend tool — it gets whipsawed in sideways chop.

What you see (on the price panel)

  • Green dots below price = uptrend; the dot is your trailing stop.
  • Red dots above price = downtrend.
  • Cyan up-arrow / magenta down-arrow = a stop-and-reverse (the dot jumped to the other side).
  • Label: current trend, bar count, and the exact stop price (stop 123.45).

How to trade it (the core play)

  1. Trade with the dots. Dots below = hold/look long; dots above = hold/look short.
  2. Use the dot as your stop. Each bar it tightens — let it trail your winner.
  3. Enter on a flip arrow in the new direction, ideally agreeing with your trend filter (e.g. price above the 50 EMA).
  4. Exit/reverse when price closes through the dot (the next flip).
  5. In chop, stand aside — repeated flips with no follow-through is SAR telling you there's no trend.

Settings (inputs)

  • accelerationFactor (0.02) — how fast the stop tightens. Higher = tighter, more flips.
  • accelerationLimit (0.2) — cap on the acceleration.
  • showFlipArrows (yes) — draw the stop-and-reverse arrows.

Best on

  • Liquid, trending stocks, ETFs, and futures. Pairs well with a trend filter to avoid range-bound whipsaws.

Common mistakes

  • Using SAR in a range — sideways price produces back-to-back flips and losses.
  • Ignoring the dot as a stop — its whole purpose is to trail; don't widen it.
  • Taking every flip blind — confirm with trend context (HTF SAR or 50 EMA).

Video script outline (for your WeTradePro tutorial)

  1. Hook: "This indicator IS your trailing stop — it tells you exactly where to get out."
  2. Show dots below in an uptrend, above in a downtrend.
  3. Explain acceleration: the dot tightens as the trend runs.
  4. The flip: stop-and-reverse arrow = trend change.
  5. The play: enter on the flip, trail the dot, exit on the next flip.
  6. The warning: SAR hates chop — pair it with a trend filter.
  7. Recap + "import link in description."

Educational analysis, not financial advice.

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