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The Welles Wilder rules for PSAR specify "never move the SAR for tomorrow above the previous day's low or today's low". This rule was followed normally, but not if it occurred immediately after a reversal. This scenario is rare but should be fixed.
Impact: the SAR point immediately following a reversal where a low threshold applies is slightly off. Variation is usually very small and not easily detectible. I suspect most charting platforms don't even follow this rule.
expected behavior
The rule should always be followed.
The text was updated successfully, but these errors were encountered:
the problem
The Welles Wilder rules for PSAR specify "never move the SAR for tomorrow above the previous day's low or today's low". This rule was followed normally, but not if it occurred immediately after a reversal. This scenario is rare but should be fixed.
Impact: the SAR point immediately following a reversal where a low threshold applies is slightly off. Variation is usually very small and not easily detectible. I suspect most charting platforms don't even follow this rule.
expected behavior
The rule should always be followed.
The text was updated successfully, but these errors were encountered: