What are the recommended parabolic SAR settings for identifying trend reversals in digital currencies?

3 answers

• Omprakash SeerviFeb 18, 2025 · 9 months ago
  The recommended settings for the parabolic SAR indicator when identifying trend reversals in digital currencies can vary depending on the specific cryptocurrency and time frame you are analyzing. However, a commonly used setting is an acceleration factor of 0.02 and a maximum step of 0.2. These settings are known to provide a good balance between sensitivity and reliability in detecting trend reversals. It's important to note that the optimal settings may differ for different cryptocurrencies and time frames, so it's always a good idea to backtest and experiment with different settings to find what works best for your specific trading strategy.
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• Hovmand BehrensAug 19, 2020 · 5 years ago
  When it comes to identifying trend reversals in digital currencies using the parabolic SAR indicator, there is no one-size-fits-all answer for the recommended settings. It's crucial to consider the volatility and characteristics of the specific cryptocurrency you are analyzing. Generally, a lower acceleration factor and maximum step can provide more sensitive signals, but they may also generate more false positives. On the other hand, higher settings can filter out noise but may result in delayed signals. It's recommended to experiment with different settings and backtest your strategy to find the optimal parabolic SAR settings for trend reversal identification in digital currencies.
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• inam khanSep 27, 2020 · 5 years ago
  BYDFi, a leading digital currency exchange, recommends using an acceleration factor of 0.02 and a maximum step of 0.2 when using the parabolic SAR indicator to identify trend reversals in digital currencies. These settings have been found to provide reliable signals for detecting potential trend reversals. However, it's important to note that the optimal settings may vary depending on the specific cryptocurrency and time frame being analyzed. Traders are advised to conduct thorough backtesting and experimentation to determine the most effective parabolic SAR settings for their trading strategies.
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