Hi Thomas,
Thanks for the input.
I agree with you on all points - it's just REALLY difficult to stay in when you see this - but - that's the way Parabolic SAR works.
I'm pretty sure about waiting for the new PSAR dot to appear before stop and reverse though - as just today I've made some big profits (still in) - but the one or two positions that I opened 'immediately' when Parabolic SAR was penetrated are just about balancing those profits out. Put it this way - I am of the opinion that the small amount of PIP's you may lose by entering the trade the next day (assuming that at some point it turned again and started going in the right direction) is nothing in comparison to one of those trades opened 'immediately' upon penetration and then the flippin' thing turns and keeps going in the opposite direction and invariably starts trending nicely for a few days!!! Funny enough - the positions where I have had this problem during the course of today ALL started with those 'close together' and 'in-line' dots!!!
I (you / anybody using this indicator) just have to remember that there will be losses and you can't win them all but the profits over the long term are pretty much guaranteed one way or another as long as you stick to and maintain the system on a daily basis. I hope I'm right because now that I've 'topped' this forex account up (to prove a point like I said) I'm no longer trading small change on an almost 'wiped out' account like before when I started this 'experiment'!!!
Regards,
Dale.
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