Parabolic SAR - that's all!

[ottober8]

Dale,
what you feel?
finally short with gold?
PSAR H4 down, MACD already down
Claudio

[dpaterso]

Hey 'Just Joan',

See what happens when I turn my back!!! Now EUR/CHF has moved up again!!! This pair is REALLY starting to p**s me off!!! It really looks like I need EUR/USD to make a good strong turn down for EUR/CHF to STAY in a profit. It looks like it's getting close but still not there yet. Joan - just by the way - if you're 'worried' about Delta's Parabolic SAR giving entry or reversal signals too early then it is a perfectly valid 'strategy' to wait for an extra 'dot' or two before opening a postion or reversing i.e. when comparing it to my 'correct platform' and manual calculations it is evident that it's (Delta's) never more that a dot (max two) ahead ON ENTRY OR REVERSAL BUT it does seem to keep you in the trade a lot longer with less 'whipsaws' than 'CORRECT' Parabolic SAR (if that makes sense). Also - like I said before - if you are waiting for a MACD cross - it does not SEEM to make a difference that Delta is 'slightly' ahead sometimes i.e. you're just doing it the other way around (instead of MACD having ALREADY crossed and then entering when PSAR gives a signal PSAR is giving the signal FIRST then enter when MACD crosses and 'ride the trend')!!!

Claudio:

I only trade the daily charts so I'm still about a day or two away from a Parabolic SAR signal to go short and MACD has not yet crossed. Yesterday - I DID take a chance on EUR/NOK and entered on a shorter timeframe - but - I'm not proud of myself for doing it and to be quite honest I'm just lucky that it's currently paying off. If you're trading shorter timeframes be my guest but personally - I would not take a chance like that on Gold i.e. you need to know FOR SURE that it's turned. Actually - as I type this message - I see it's 'teasing' again!!!

Regards,

Dale.

[dpaterso]

I was just having a look at MACD again and I am of the opinion that not ALL MACD signals are equal in their 'strength'.

What I'm thinking is this: if the MACD EMA crosses the MACD signal line close to the zero line or while it is 'overlayed' on the OsMA then that signal is NOT as strong as when the MACD EMA crosses the MACD signal line further away from the zero line AND when it's actually 'cleared' the OsMA.

Another way of explaining this is as follows: (At Delta anyway) there are MACD values at the top left hand side of the MACD display area. Basically what I'm saying is this: a 'valid' and 'strong' MACD signal is only 'valid' and 'strong' IF 'DIFF' AND 'DEA' values are GREATER than the 'MACD' value when they cross (or LESS than the 'MACD' value if looking to go long) AND AWAY from the zero line (I suppose that goes without saying).

Take a look at the attached charts and feel free to comment.

Look - I don't know about you people - but I'm feeling quite confident that we are about ready to release VERSION 1.0 of this system i.e. put it together nicely in an Adobe .pdf file and post it here.

Does anyone (that has gone through the WHOLE thread have anything else to add for now)?

Where the 'eff' is Ingot54???

Regards,

Dale.

[ottober8]

Dale

Thank you for the info, very precious
I could be interested to test PSAR method on Gold always on D1. As you told this indicator was developed on commodities o not?

Regarding EURCHF on my MT4 platform (InterbankFx DEMO server) PSAR value is: 1.6454 (bull)
EUROCHF D1 LOW up now is 1.6466.
It seems to stay still bull...

Claudio

PS AMAZING EURUSD, when it will retrace????

[dpaterso]

Hello Claudio,

Well - 'the indicator' was developed by Mr Wilder and he only traded commodities at that time as far as I know (like Soybeans, Coffee, etc. etc. etc.) BUT because of its nature and design it 'should' - and would appear 'does' - work on anything. Whether or not using parameters different from the default parameters on different instruments would actually make a difference (wow - there's a lot of 'differents' in that sentence) remains to be seen. Mr Wilder DOES say that you can alter the parameters BUT does not specifically say to alter them to suit different instruments but merely so that YOUR stops and / or entry / exit points differ from those of the rest of the market players.

I have a reversal signal from Parabolic SAR at GCI to day (before the candle or bar has closed though) and it sure looks like I'll get one tomorrow morning from MT4 as well so here's to hoping. It would appear that it's gotten stuck in a range for now i.e. ADX is at 13 at the moment and does not appear to be going in any particular direction BUT at least my Parabolic SAR stop is closing in on the price SO I won't (hopefully) be writing off TOO much if I get stopped out - I just HATE writing off a loss though - especially after holding this for a couple of days. MY FAULT if I lose though - I entered BEFORE I got a Parabolic SAR signal AND before MACD crossed ('Just Joan') and the entry was based on RSI and Stochastics alone - which - COULD have worked - MAY EVEN still work - but not worth the aggravation!!! As a matter of fact - I do not know WHAT 'posessed' me to even take this position (other than impatience) i.e. if I look back on it now: RSI was sort of 'in the middle', MACD had not crossed (and even if / when it does it's a 'weak' signal in my opinon), AND 'horror of horrors' ADX was at 14 clearly indicating a range bound pair!!! It just goes to show just how ones 'emotions' can so easily cloud ones judgement i.e. I had EVERY justification 'under the sun' to take this position BUT technically as per our 'new rules' (which by the way it would appear that I'm the only one trying to follow them ALL) in hindsight there was no good reason to take this trade (actually there was not even a bad reason to not take this trade). If it starts trending down now then it's more 'luck' than 'skill' on my part.

By the way - as far as the 'new rules' are concerned - I must tell you that I think they're good (even although they may be overly conservative) i.e. while going over my daily charts (daily) it is becoming increasingly clear that using all the indicators as detailed previously is definitely NOT a waste of time i.e. I have had two or three Parabolic SAR entry / reversal signals on certain pairs this week (yesterday and the day before) that I have NOT taken because the 'new rules' had not been 'satisfied' (impressed anyone???) and although my initial reaction was one of 'maybe I should have taken those trades - why not - it worked before' - when I look now - they have ALL gone 'sour'.

EUR/USD??? Who the hell knows BUT I do know that it's starting to get on my nerves!!!

Regards,

Dale.

[Larryfp]

So you guys are talking about selling EUR/CHF tommarrow if you get the Parabolic Sar signal? I have been reading through the thread and it seems like you have put an amazing amount of work into this. As soon as I have some time I am going to print it all out and spend a DAY going over everything (I work 60 hours a week right now so I can't).

I want to see how a trade goes when you follow every rule you have been talking about.

This is really interesting to me and hopefully very soon I will get up to speed and be able to contribute to the group.

Larry

[dpaterso]

Hello Larry, and welcome to the thread!!!

Good morning everyone, 'sh1t' morning everyone!!!!

WHY is EUR/CHF 'messing' with me???

(By the way Larry - nobody should be going short EUR/CHF - not today anyway - only 'good 'ol me' that BROKER THE RULES the other day - and if you check out 'the rules' you'll see why)!!!

And I see Gold is 'playing up' as well!!!

AND - IF NONE OF THE ABOVE IS BAD ENOUGH FOR YOU (WELL ME ANYWAY) - GET THIS:

US Economic data just keeps getting worse and worse and yet stocks AND OF COURSE THE INDICES keep going up!!! C'mon guys - I've got bills to pay next week!!!

AND TO TOP IT ALL OFF NICELY:

I thought summer was here with a vengeance - TODAY IT'S FREEZING COLD AGAIN. Me thinks I need to buy that DVD of Al Gore's to see EXACTLY what the 'f**k' is going on!!!

Anyway - have a LOVELY day!!!

Regards,

Dale.

[dpaterso]

I've just got to 'share' this with you:

I just heard on the news that South African Airways (SAA) (our national carrier) apparantely 'fired' someone from their job (or 'terminated' their employment contract or whatever you call it in your countries) a while ago. This sperson then took them (SAA) to court (instituted legal proceedings I assume for 'unfair dismissal' or whatever the case may have been). Anyway - the court found in favour of the (ex) employee and ruled that SAA must pay the employees claim as well as any legal fees and legal costs involved. SAA apparantely paid the (ex) employees claim BUT refused to pay any legal fees or costs. So - the court ordered the 'sherrif of the court' (or whatever this person is called in your countries) to 'attach' a JUMBO JET!!! (SAA says that the 'sherrif of the court' did NOT attach a plane, however, only an engine)!!! Anyway - needless to say - they're paying up now!!! Who says that justice is not alive and well in Africa!!!

ROFLOLTSOOE!!!

Regards,

Dale.

[ottober8]

On my MT4 today:
USDCAD now long
EURCAD now long

Claudio

[dpaterso]

No MACD crossing yet though!!!

RSI, Stochastics, and ADX looking 'ripe' though - should be two goods trades coming (just watch Oil though).

Dale.