G'day everyone.
I think the reason this indicator would work better on a daily timeframe than the 4h is all to do with ranging vs trending. Within one day there will be several ranging periods (the Asian session is a good example) and only a few trends per pair. Given that the PSAR strategy is adversely affected by periods of ranging, trading with it intra-day would require some careful planning with regard to timing. Probably best to start around 5-6am GMT to catch the London open and only trade for a few hours, or one good trade. Then try again a couple of hours before the NY open. Does this make sense to anyone?
As for trading the daily charts, ranging periods don't occur as regularly. This period of time will be telling, because there is typically less volatility at the biginning of the month. With most economic news releases comming out after around the 10th and continuing through most of the rest of the month, the second half of the month should be the most profitable.
My point is this system should work better on the daily due to the regular ranging periods that will occur on any smaller timeframe. I'm not saying the PSAR can't be used on a smaller timeframe, but you will need to be selective with WHEN you trade within the day. Just my thoughts.
-Benjimang
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