Parabolic SAR | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

Parabolic SAR Expert Advisor 22 replies

Parabolic SAR on MT? 7 replies

Parabolic SAR (Stop and Reverse) ind 7 replies

Parabolic SAR 4 replies

Quick Question about parabolic SAR 1 reply

Attachments: Parabolic SAR
Exit Attachments

Parabolic SAR

  • #1
  • First Post: Apr 27, 2007 8:18am Apr 27, 2007 8:18am
Can anyone in a nutshell explain the use of the Parabolic SAR? Would I use it to set my stops once in a trade?

Any feedback would be much appreciated....

Thanks..

Marc
  • #2
  • Apr 27, 2007 8:28am Apr 27, 2007 8:28am
Quoting marcf
Can anyone in a nutshell explain the use of the Parabolic SAR? Would I use it to set my stops once in a trade?

Any feedback would be much appreciated....

Thanks..

Marc
Different strokes for different folks, but I don't use it for SLs. I use it to plan buy/sell stops/limits,on the lower TFs, and wait for price to resume its trend from the higher TFs (see reply to your other thread).
If a retracement is stalling I look to place the order around the nearest PSAR dot ABOVE/BELOW the current price and look to let price pick up the order.
If the trend is over (eg daily chart) and price keeps moving away from my entry, I've lost nothing except a bad entry. If it returns to the main trend, I'll be in, a few pips short maybe but in a potentially better trade.
I never trade against the main trend as seen on the dailies/weeklies now, and, so far, am on the winning side.
Hope this helps.

Edit: Try this site for many of your questions, I've linked to the PSAR page for you. You'll need to scroll down to see all the articles http://www.investopedia.com/search/r...px?q=Parabolic
  • #3
  • Apr 27, 2007 8:28am Apr 27, 2007 8:28am
Here ya go...... http://www.investopedia.com/articles.../02/042202.asp
bookmark this link, it's a good resource.
Same Whore .... Different Dress
  • #4
  • Apr 27, 2007 8:33am Apr 27, 2007 8:33am
Funny....but thanks for the education...

Quoting PeterFM
Different strokes for different folks, but I don't use it for SLs. I use it to plan buy/sell stops/limits,on the lower TFs, and wait for price to resume its trend from the higher TFs (see reply to your other thread).
If a retracement is stalling I look to place the order around the nearest PSAR dot ABOVE/BELOW the current price and look to let price pick up the order.
If the trend is over (eg daily chart) and price keeps moving away from my entry, I've lost nothing except a bad entry. If it returns to the main trend, I'll be in, a few pips short maybe but in a potentially better trade.
I never trade against the main trend as seen on the dailies/weeklies now, and, so far, am on the winning side.
Hope this helps.

Edit: Try this site for many of your questions, I've linked to the PSAR page for you. You'll need to scroll down to see all the articles http://www.investopedia.com/search/r...px?q=Parabolic
  • #5
  • Apr 27, 2007 8:39am Apr 27, 2007 8:39am
I actually use it on a 5 min chart to trade off of.
I will initiate an order when the dot changes sides of the price.
I am testing an EA that I built that will trade when this happens.
Not bullet-proof, but it has made some small trades that were profitable.
I just do not let it run un-attended.
  • #6
  • Last Post: Apr 27, 2007 8:51am Apr 27, 2007 8:51am
Here's a current trade. You can see where I'd placed my buy stop @ 1.9925 a couple of days ago. I'd gone down to the hourly and you can see the retracement had run out of steam at that point, and I set my buy limit a couple of PSAR dots above price to give a safety net. Never worry about pips left on the table, or missed at the start of a move. There are more trades around the corner.
I exit when I feel it's right and I'll hold for longer than I used to. I've come out of too many good trades by keeping stops too close, but as a rule I start to look for the PSAR to get within 50-60 pips of price after a good run. It will become easier with time, but for now take your profit as you feel is right for you.
Attached Image
0 traders viewing now