Parabolic SAR

📌 This indicator enhances the traditional Parabolic SAR trend-reversal system by incorporating adjustable strictness filtering based on candle structure, volume confirmation, volatility-based body size, and moving-average bias, enabling cleaner and more selective signals.



■ User Inputs

SAR Start / Increment / Max: Standard Parabolic SAR parameters controlling acceleration and sensitivity.
Strictness Level (1–10): Defines the filtering intensity applied to SAR crossover signals, where higher levels require stronger candle confirmation, higher volume thresholds, and trend-aligned price action relative to moving averages.

■ Base SAR Logic

The script calculates the Parabolic SAR using TradingView’s built-in ta.sar.
Two raw signals form the foundation:

Rising Base: Close crosses above sar.

Bearing Base: Close crosses below sar.

These are not used directly—filters refine them according to the chosen strictness level.



■ Filter Components

The script evaluates multiple market conditions:

Candle Direction:
candle_up = close > open, candle_down = close < open.

Volume Filter:
Volume greater than 10-period SMA.

Body Size Filter:
Normal body: |close-open| > ATR(14) × 0.2
Strong body: |close-open| > ATR(14) × 0.5

Trend Bias:
Price above/below SMA (20 or 50) depending on strictness level.

These elements combine to confirm signal strength and reduce noise.

■ Sensitivity Level Logic (1–10)

Each level progressively increases strictness:

Level 1: Pure SAR crossover only.
Level 2: SAR crossover + candle direction alignment.
Level 3: Adds volume confirmation.
Level 4: Adds minimum body-size requirement.
Level 5: Requires strong candle body + volume.
Level 6: Requires stronger volume (SMA20).
Level 7: Strong body + SMA20 volume confirmation.
Level 8: Strong body + high volume (SMA50).
Level 9: Adds trend bias:

Long = above SMA20

Short = below SMA20

Level 10 (Most Strict):

Very high volume (SMA100)

Strong body

Strong trend alignment (SMA50)

The higher the level, the less likely a breakout signal is to be seen.







■ Visualization

SAR Chart:
A green cross is displayed for an uptrend, and a red cross is displayed for a downtrend, or a custom setting is supported.

Signal Indicators:

Long-term: Green ▲ below the bar

Summary: Red ▼ above the bar

Markers are displayed by default, reflecting the filtered signal output,
or a custom setting is supported.



■ Purpose

This indicator is intended to:

Reduce SAR’s natural noise through strict filtering.

Provide tailored signal reliability based on trader preference.

Enhance candle-confirmation, volume-driven accuracy, and trend alignment.

It does not predict future price nor guarantee profitable trades—filters simply refine.