Parabolic SAR (Stop and Reverse) – FX Replay

The Parabolic SAR (Stop and Reverse) indicator in FX Replay helps you visually track trend direction and potential reversals during backtesting. It's represented by a series of dots that shift positions based on price action.

How to Use It in FX Replay:

Trend Identification:

• Dots below price = Uptrend
• Dots above price = Downtrend

Entry Signals:

• Buy when the dots flip below the price
• Sell when the dots flip above the price

Exit Strategy:

• In a long trade, exit when dots flip above the price
• In a short trade, exit when dots flip below the price

Spot Reversals:

• When SAR flips from above to below or vice versa, it can signal a potential reversal

Optimize Settings:

• Tweak the Acceleration Factor (AF) and Max Acceleration in FX Replay to make SAR more or less responsive to price swings

Best Practices:

• Works best in trending markets
• Combine with structure, volume, or confirmation indicators to improve your edge