Quote:
Originally Posted by dpaterso
2 - I have also noticed that when the Parabolic SAR dots form an 'arc' or 'curve' from the get go then this position turns into profit soon and there is pretty much no doubt. I have noticed (in most cases anyway) that when the first few dots are sort of close together and form in a straight line i.e. no 'curve' and 'closely spaced' then you should maybe not be in this trade i.e. it's like there is no 'conviction' to the price movement and what appears to normally happen in this case is that the price sort of 'hangs around' and a reversal in the opposite direction of Parabolic SAR is imminent.
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I've noticed this too, but sometimes the dots start off close together and then sort of slide and you could have hit a huge profit if you'd stayed in. I think these are more of a hindsight is 20/20 type deal. You're probably better off staying in those trades just in case, because when you hit a huge one it's going to far outweigh any small gains/losses you might incur during the short stretches when big moves are not made.
Oh, and here is an example from the current EUR/GDP that I've been watching. Notice that #1 and #2 are very similar. I'm going to stay in it just in case something drastic happens.
Just my two cents,
Thomas