The SARatdmf function in ProBuilder language is used to calculate a smoothed version of the Parabolic SAR (Stop and Reverse) indicator. This technical indicator is primarily used to determine the potential reversals in the price direction of an asset, as well as provide entry and exit points. The ‘SARatdmf’ variant includes parameters to adjust the sensitivity and limits of the indicator, making it more adaptable to different trading strategies.

Syntax:

SARatdmf[Acceleration Factor, Step, Maximum]

Parameters:

• Acceleration Factor (At): This parameter controls the acceleration of the SAR point convergence towards the price, increasing the sensitivity of the indicator.
• Step (St): This parameter determines the rate at which the Acceleration Factor increases.
• Maximum (Lim): This is the upper limit for the Acceleration Factor, ensuring that it does not become too sensitive during long trends.

Example:

i1 = SARatdmf[0.02,0.02,0.2]
IF(close[1] > i1[1] AND close < i1) THEN
  signal = -1
ELSE
  signal = 0
ENDIF
RETURN signal

In this example, the SARatdmf function is used to compute the smoothed Parabolic SAR with specified parameters. The trading signal is determined based on the position of the closing price relative to the SAR value. If the previous close was above the previous SAR value and the current close is below the current SAR value, a signal of -1 is generated, indicating a potential sell. Otherwise, the signal remains 0, suggesting no action.

Additional Information:

The Parabolic SAR is a popular indicator used in trading systems to highlight potential reversals in market price direction. Its unique feature is that it moves with higher acceleration during a trend and slows down as the trend reverses, which can be crucial for traders looking for optimal entry or exit points. The 'SARatdmf' function allows for fine-tuning of this behavior through its parameters, making it a versatile tool in various market conditions.