Parabolic SAR signals

Discussion in 'Technical Analysis' started by larrybf, Aug 7, 2002.

  1. I have never used the parabolic indicator for entries( only used as an exit tool) but i was wondering if anyone has used the parabolic indicator as an entry tool or as a key element in a trading system? thanks
  2. bone

    bone ET Sponsor

    In a choppy market it will crush you. Works much better with longer time frames.
  3. =====================
    but the less one uses it the better it is.The principal of it is even better than the actual indictor; IT TIGHTENS UP STOPS the longer one is in a trend,,,,,,,weeks/ months. :cool:
  4. Hiperfly


    Is a nice indicator to use as a Trailing Stop
  5. eurusdzn


    In old school trend following systems Donchian channels, "x" day highs, BB band breakouts seemed to have been the norm.
    It seems to me that PSAR accomplishes the same as the above indicators as an entry notification. Maybe it is visually more pleasing , maybe a little ealier than the others
    (Depending on its parameters) to inform that a pullback in trend may be complete but,
    any testing that i did with it in the past came out to be roughly 40-45% that works in bull market and probably doesnt hold as long as one should in a bull market.
    I think the only value it has is to ring the bell that a lengthy correction is at least
    bouncing, chopping ,bottoming and is worth watch list.
    Plain Vanilla off the shelf indicator?
  6. It may work on daily chart, yet results will be below average. See Parabolic SAR's scan results for daily charts at
    Parabolic SAR Scans

    When you go to lower time-frames, as "bone" mentioned choppy trading will destroy you. However, as it was mentioned above, when you caught a strong trend, this indicator could be used as a trailing stop
  7. ===================
    Good points;
    especially ''probably doesn't hold as long as one should in a bull market'':cool: Of course when a bull market gets mature enough;
    every little bit helps.:cool:
  8. elt4x


    I use Para SAR once there's a definite breakout of a significant SNR. But i will wait for a retest to get a good entry:cool: