Parabolic SAR In Excel Spreadsheet

Well if you are looking to calculate Parabolic SAR then here is the answer.But first lets just understand as what is it in brief -

Parabolic SAR or(Stop and reverse )Method was introduced by J. Welles Wilder, Jr (Creator of RSI and DMI) for technical analysis of securities.This concept was built on thinking that a security will have to generate more porfits over time.A parabola below the price is generally bullish, while a parabola above is generally bearish.

The formula for the SAR is:

SARt = SARt-1 + ( a * ( EPtrade - SARt-1) )
SARt is the stop and reverse price for the current interval.
SARt-1 is the stop and reverse price for the previous interval.
a is the acceleration factor.
EPtrade is the extreme price for the trade.
Now it comes as how do we calculate or plot it in excel.Well here is a spreadsheet for you to download which will make your work more easier.Thanks to esignal share.This spreadsheet will allow you to understand how to put your values and how to make formula.Also there is chart formation which will show how the values will appear.