The parabolic stop and reverse (PSAR) indicator was developed by J. Welles Wilder, Jr. as a tool to find price reversals which can be utilized as stop-loss levels as well as trade triggers. The notable difference about the PSAR indicator is the utilization of time decay. The Parabolic Stop and Reverse (PSaR) is a technical indicator that is used to identify potential trend reversals. It is plotted as a series of dots on a chart and is based on the concept of parabolic time/price movement. The PSaR is calculated using the asset's high, low, and close prices over a given time period. It is typically plotted above the price action when the trend is down, and below the price action when the trend is up.  Traders often use the PSaR as a trend reversal indicator, looking for a breakout above or below the dots as a potential trend reversal signal. For example, if the trend is down and the price action breaks above the PSaR dots, it could be a potential buy signal. Conversely, if the trend is up and the price action breaks below the PSaR dots, it could be a potential sell signal. Overall, the PSaR is a useful tool for identifying potential trend reversals and can be a helpful addition to a trader's toolkit. The Parsbolic Stop and Reverse for the Jackrabbit suite and modulus framework supports differential timeframe analysis and confirmational bias. Timeframes supported: 1 Second, 5 Seconds, 15 Seconds, 30 Seconds, 1 Minute, 5 Minutes, 15 Minutes, 30 Minutes, 45 Minutes, 1 Hour, 2 Hours, 3 Hours, 4 Hours, 6 Hours, 8 Hours, 12 Hours, 1 Day, and any custom timeframe TradingView supports. The main indicatior and the confirmational indicator can both be
individually tuned for the following:
The Jackrabbit modulus framework is a plug in play paradigm built to operate through TradingView's indicator on indicatior (IoI) functionality. As such, this script receives a signal line from the previous script in the IoI chain, and evaluates the buy/sell signals appropriate to the current analysis. The results are either combined with the signal line, or used as confirmation to the signal line. A new signal line is generated for the next script in the link. Buy/Sell alerts are produced, but this script is not designed or meant to function outside my framework. By default, the signal line is visible and the charts are turned off. Signal line visibility is controlled by the Style tab, and the charts display is controlled by the indicator settings tab. This script is part of a subscription along with 20 other scripts that make up Jackrabbit TV. For more information, please visit my patreon site. |
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