What does using acceleration factors in Parabolic SAR accomplish?

Using acceleration factors in Parabolic SAR increases the effectiveness of the indicator as price trends continue. The Parabolic SAR (Stop and Reverse) is designed to identify potential reversal points in the market by using a series of dots that indicate the direction of the trend; when the price is above the dots, it suggests an uptrend, and when below, a downtrend.

The acceleration factor adjusts the sensitivity of the indicator: as the price moves in the direction of the trend, the value of the acceleration factor increases, causing the dots to move closer to the price. This adjustment allows the Parabolic SAR to lock in profits more effectively as the trend develops, making it a valuable tool for trend-following traders. By increasing the effectiveness of the indicator in this way, traders can better manage their positions and stay aligned with the prevailing market momentum, enhancing their ability to capitalize on extended price trends.