Along time ago I ran into an article discussing how to use the parabolic sar to set stops. I can't find it now. Anyone know what they were talking about and how you would use them for stops?
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Parabolic SARS 6 replies
Quoting bluemonkeyDislikedAlong time ago I ran into an article discussing how to use the parabolic sar to set stops. I can't find it now. Anyone know what they were talking about and how you would use them for stops?Ignored
Quoting vegasDislikedbluemonkey,
I'll tell you an interesting story.
SAR is Welles Wilder's "Parabolic Time Price" system, developed around 1980.
In the mid 1980's, a group of guys hit the trading floor and used this to trade the S&P futures contract [back then the futures contract was 500 times the index, and a move of 0.05 index points was = $25]. Two months later they were all gone.
By the way, you can simulate SAR very easily with Jurik Moving Averages (JMA). If you look hard enough [google search] you can find the code and put into metatrader 4.
SAR ONLY works well in a medium-paced trending market. All other types and it fails badly. My gut feeling is that the system was developed for the gold market in the late 1970's, to catch that 6 year bull market, which was basically a one-way street for about 70 months.Ignored
Quoting LouDislikedHi Blue..
try this link http://www.investopedia.com/articles.../02/042202.asp
or go to Investopedia.com and do a SAR search.
You thinking of trying this on the median system?
LouIgnored
Quoting WTBDislikedSAR by itself is meaningless, just like trading MAs crossovers or RSI's overbough/oversold by themselves will only lead to a miserable loss in the long run. Having said that, I do believe that SAR does have its value when it comes to visualize some aspects of the chart. Something similar like Hekinashi candles.Ignored
Quoting vegasDislikedbluemonkey,
I'll tell you an interesting story.
SAR is Welles Wilder's "Parabolic Time Price" system, developed around 1980.
In the mid 1980's, a group of guys hit the trading floor and used this to trade the S&P futures contract [back then the futures contract was 500 times the index, and a move of 0.05 index points was = $25]. Two months later they were all gone.
By the way, you can simulate SAR very easily with Jurik Moving Averages (JMA). If you look hard enough [google search] you can find the code and put into metatrader 4.
SAR ONLY works well in a medium-paced trending market. All other types and it fails badly. My gut feeling is that the system was developed for the gold market in the late 1970's, to catch that 6 year bull market, which was basically a one-way street for about 70 months.Ignored
Quoting quinnDisliked
Vegas great stuff!
Not only do you help us to trade better but your combat experience, helps out a lot, when it comes to questions like BlueMonkey posted.
Who da thunk Forex Factory could get any better?
Glad your here man, appreciate all the good info.
Thanks
QuinnIgnored
Quoting vegasDislikedbluemonkey,
I'll tell you an interesting story.
SAR is Welles Wilder's "Parabolic Time Price" system, developed around 1980.
In the mid 1980's, a group of guys hit the trading floor and used this to trade the S&P futures contract [back then the futures contract was 500 times the index, and a move of 0.05 index points was = $25]. Two months later they were all gone.
By the way, you can simulate SAR very easily with Jurik Moving Averages (JMA). If you look hard enough [google search] you can find the code and put into metatrader 4.
SAR ONLY works well in a medium-paced trending market. All other types and it fails badly. My gut feeling is that the system was developed for the gold market in the late 1970's, to catch that 6 year bull market, which was basically a one-way street for about 70 months.Ignored