Parabolic SAR - that's all!

[rhodytrader]

Originally Posted by dpaterso

Thanks for the answer John, although I'm still not convinced, sorry.

I suppose the answer to the question really relates to market sentiment and who the driving force in the market is.

I suppose another way of explaining what my 'issue' is by way of a question: 'Which global closing price is being monitored by the powers that be'?

If traders (institutional and individual alike) only operated on a daily closing basis, then maybe there would be something worth talking about here. But they don't. They operate in all timeframes and execute trades all throughout the day.

As I noted before, in the application of technical analysis in a market which really only closes for the weekend, it doesn't really matter when you define your close, so long as you use the same one all the time. It's not as if the prices are different.

[adamzgreat]

Hi ChuckNorris

You defined a higher high as:

Higher high is when price closes higher than previous day/week (depending on which time frame you use).

So I can deduct that a lower low is:
Lower low is when the candle closes lower than previous day/week (depending on which time frame you use).

But in this chart that you posted, the lower low candlestick closed at a price higher than the previous red candlestick.
Could you tell me what I am getting wrong.


PS: this is my last post in this thread.

[dpaterso]

adamzgreat:

When I first saw your post I thought to myself: 'What is wrong with this person?' BUT I myself have just had another look at 'Chucky's' system and I can see WHY there is confusion i.e. I'm confused myself so I apologise for thinking you're a 'twit'!!!

ChuckNorris says:

Higher high is when the price closes higher than previous day/week

ChuckNorris, I hate to tell you but it is INDEED confusing i.e. a 'higher high' is exactly what it says and a 'higher close' is ALSO exactly what it says so by 'wording' it the way you have nobody seems sure as to what you're actually trying to say (no offense).

The question is:

Are you talking about 'higher closes' or 'higher highs'? In other words (depending on your answer) should the above statement ACTUALLY read as follows:

Higher close is when the price closes higher than previous day/weeks close

OR should it read:

Higher high is when the high price reached is higher than the high price reached the previous day/week

OR should it read:

Higher high is when the price closes higher than the high price reached the previous day/week

Sorry but there is a big difference between these statements and I can see why adamzgreat is getting confused.

[ChuckNorris]

Originally Posted by adamzgreat

Hi ChuckNorris

You defined a higher high as:

Higher high is when price closes higher than previous day/week (depending on which time frame you use).

So I can deduct that a lower low is:
Lower low is when the candle closes lower than previous day/week (depending on which time frame you use).

But in this chart that you posted, the lower low candlestick closed at a price higher than the previous red candlestick.
Could you tell me what I am getting wrong.


PS: this is my last post in this thread.

lol. Please read my system again. I never mentioned anything about lower close or higher close.

[dpaterso]

Hey 'Chucky', I know how you feel BUT I'm afraid I HAVE to try and help out here again.

I printed out the page where you detailed your system on this thread and I'm looking at it now.

At the top of the page (paragraph three) you state the following:

If you wanna sell then find a candlestick that makes a Higher High. Higher high is when price closes higher than previous day/week (depending on which time frame you use).

Right? Right!

I think the problem is this: a candlestick can have a higher high but that does not necessarily mean it closed higher. See what I'm getting at? It's the paragraph quoted above that is causing the confusion (I assume).

In other words I'm saying this:

Sell:

1. First candlestick makes Higher High (does not matter where it closed)
2. Second candlestick makes Lower High (does not matter where it closed)
3. Third candlestick breaks low (not close) of 2nd candlestick (candlestick that made Lower High)
4. Sell when 3rd candlestick breaks low (not close) of 2nd candlestick.

etc. etc. etc.

Am I AT LEAST getting the picture??? If so then that should solve everybodys (including your) problem (your problem being the fact that you're going to have to keep repeating yourself until you clear this up. Trust me on this one. How do you think I got to 1000 posts? They were not all 'original' 'pearls of wisdom' I can assure you).

[tonymand]

I read Chuck's post a little differently perhaps because I thought I understood the intent which I assumed was that you have to wait for a candle to close to know what its parameters are and then you look for the LH or HL. Cant be any other way really and as I think I commented before this is a standard 1-bar reversal technique. In any case folks should probably be trying it out for themselves (a better use of time than posting I would think) and see what works best and makes some logical sense. Some people do indeed argue that the OC is more important than the LH. I agree on that for stocks not so convinced on FX although at least one trading approach I use ignores tails. Just my 2c

[dpaterso]

How difficult can this be???

OK:

Sell:

1. First candlestick makes Higher High (does not matter where it closed)
2. Second candlestick makes Lower High (does not matter where it closed)
3. Third candlestick breaks low (not close) of 2nd candlestick (candlestick that made Lower High)
4. Sell when 3rd candlestick breaks low (not close) of 2nd candlestick.

Buy:

1. First candlestick makes Lower Low (does not matter where it closed)
2. Second candlestick makes Higher Low (does not matter where it closed)
3. Third candlestick breaks high (not close) of 2nd candlestick (candlestick that made Higher Low)
4. Buy when 3rd candlestick breaks high (not close) of 2nd candlestick.

In all cases: with the exception of the candlestick that is giving you a trade signal you wait for each candlestick to close before entering a trade.

Clear enough???

Geez, now even I know the system!!!

[dpaterso]

By the way:

(a better use of time than posting I would think)

Nothing better to do until the brokers open tonight!!!

[dpaterso]

Does anybody here know how to post a 'poll'?

Every time I've tried it nothing happens (been like this for months now).

Can you post a 'poll' to an existing thread or does it have to be posted when the thread is started? Could that be my problem i.e. trying to post a 'poll' on this thread now?

Do we need special 'permissions' or something like that?

[adamzgreat]

thanks for the replies