Quote:
Originally Posted by Big Pippin
Anyways, I would have to agree with ccox with going with the daily charts for the SAR. Currency has many side steps but the over all trend (best on daily or longer periods) is best, ranging market would be death to this indicator. Only way I could reccomend shorter times frames would be like news trading like today with the NFP, SAR would tell u when the dollar fall is over. But there are many other ways to tell that.
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I have to concur... and do not try back testing the PSAR on short time frames either... it just does not tell you exactly what happened... That little dot can jump like crazy, giving all kinds of false signals.
If you do use PSAR, use it on long time frames (daily +) and definitely use it in conjunction with something else...
We once had a very "nice" system worked out with the PSAR and when you back tested it worked wonderfull... when you start trading it you will see how those dots can jump from one side to the other. Lagging indicator and you can achieve same / better results for the trend with MA's.