Bolingers Bands based on SAR

The indicator displays on the chart the moving average value of the Parabolic SAR indicator, as well as two lines of standard deviations shifted according to the settings .

The purpose of the indicator is to determine the tolerance within which price movement is possible after a reversal of the SAR indicator.

 

Construction principle

  • The center line is a simple moving average (SMA) of the Parabolic SAR indicator.
  • The upper and lower bands are the same moving average, but shifted by several standard deviations. They expand when the SAR trend changes.

Settings

  • Step (step)—Set in the same way as for the Parabolic SAR indicator. Values from 0.01 to 0.2
  • MaxStep (maximum) - Set the same way as for the Parabolic SAR indicator. Values from 0.1 to 0.2
  • B (Period) — indicates the number of intervals used to calculate the average line. The default value is 16, but for long-term trend analysis, you can set it to 40–60.
  • OTKL (Deviation Coefficient ) – this determines how wide the bands will be. The standard value is 2, but sometimes 6 is used; this allows you to identify the maximum or minimum price of a trend.

Application

  • Flat - The upper and lower lines show the border of the flat .
  • Uptrend - the upper line is the stop level for BUY positions.
  • Downtrend - the lower line is the stop level for SELL positions.

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