Theory :

Parabolic SAR is calculated using high and low prices. This indicator allows you to :

  • use any price (not just high and low)
  • use average of the price (instead of using "raw" price)

Usage :

You can use it as any "regular" SAR. Interesting results can be achieved by using same price for high and low (as in the second example - close price used for both high and low)