Engineering Alpha

Engineering Alpha

Combining Moving Averages With the Parabolic SAR.

Can Moving Averages and PSAR Provide Good Signals?

Sofien Kaabar, CFA's avatar
Sofien Kaabar, CFA
Mar 18, 2022
∙ Paid

Moving averages are great trend-following tools. Similarly, the Parabolic SAR also can hint at the beginning of a new trend. What if we try to combine the two together to give us a timely signal of when a new trend will emerge. This means that we will use the moving averages as dynamic support and resistance levels while confirming the reaction with the…

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