Parabxot

This indicator is a modified Parabolic SAR (Stop And Reverse) created by Dennis Meyers in 2001 in order to avoid the typical whipsaws produced in ranging, non-trending markets. Parabxot does not reverse unless the price penetrates the previous SAR level by a specified amount. Also it increases (decreases) the initial distance of the SAR level by adding (substracting) a predefined percentage amount to the Parabolic starting value.

The thresholds can be adjusted using the following parameters:

• xo controls the percentage amount added or substracted to the last Parabolic SAR value in order to allow a change in direction in the indicator.
  
• xpr defines how much should be added to the previous highest high (in case of a bearish reversal) or substracted to the previous lowest low (in case of a bullish reversal), expressed as a percentage of price.
  

Setting xo and/or xpr to zero disables the filters and the indicator behaves as the original Parabolic SAR.

Reference
Meyers, Dennis (2001), The Improved Parabolic + Noise Filter System

Release Notes:

Fixed error in line 20 (replaced + by *)