[dpaterso]

Hello,

ozzy007:

Parabolic SAR can 'theoretically' change, or rather, give different conflicting signals in the same day. Strictly speaking, if you look at the book, it won't happen until the next day (on the daily charts) i.e. you'll only get a Parabolic SAR dot indicating a stop and reverse the next day (or should I say you would only 'act' the next day). The reason I say 'theoretically' is because, obviously, the original 'work' was done using 'manual handrawn' charts and, from what I gather, Wilder would only have known at the close of the day that it was indeed time to stop and reverse. Nowadays you will find that, with some brokers, if Parabolic SAR is penetrated and you 'refresh' the chart a new Parabolic SAR dot will appear 'as if by magic'. In 'the old thread' I don't think we ever really agreed on this i.e. do you stop and reverse immediately when Parabolic SAR is penetrated or do you wait until the next day i.e. do you wait for a new daily bar to appear for confirmation? As many times as I saw Parabolic SAR get penetrated and then the price retraced I saw Parabolic SAR get pentrated and the price continued on in that direction. No clear answer on this one. What I CAN tell you is that if you have the book (which I am assuming is the case) the systems in the book are FAR better to trade i.e. trade the systems and use Parabolic SAR for confirmation if you must. Like I said in 'the old thread': Parabolic SAR, as great an indicator as I think it is, 'is what it is' and I, and a lot of other good people, spent a lot of time trying to improve it's 'efficiency' and 'accuracy' and I can't honestly tell you that it was worth the time and effort in the long run. Also remember that Parabolic SAR is an 'indicator' whereas the systems detailed in the book are actual 'trading systems'.

And by the way: no offence to anyone but I don't think that this thread should spend too much time on Parabolic SAR or 'The Parabolic Time Price System' as detailed in the book (which is, essentially, the same thing). Like I said: there is nothing more that I, or anyone else, can tell you about Parabolic SAR that has not been covered in the 'Parabolic SAR - that's all!!!' thread. Believe you me: I'm sure we spent more time 'dissecting' Parabolic SAR than Wilder himself did!!!