Parabolic SAR Indicator

Beginner Questions
1

When using this indicator, does the distance between the dots and market price have an impact on the strength of the signal?

2

what do you mean by “signal”?

are you proposing using this indicator as part of trade-entry timing or decision-making?

don’t let anyone (including me!) put you off trying whatever you want to do, in trading, but that’s not what the PSAR indicator was invented for, and it’s not a use of it that i’ve ever seen any serious or professional or successful trader using - i think it’s rather strongly “against the odds,” if you don’t my saying

in general, a good way to use indicators is to start from the perspective of “what information do i want to be displayed?” and then find indicators that display it … and at all costs avoid the approach of “here’s an interesting-looking indicator: how can i use it to enter trades?” - that’s really a very widespread approach among the great majority of people who don’t ever become profitable traders :open_mouth:

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3

Parabolic SAR’s dots signify trend direction (dots below price indicate bullish trend, above indicate bearish), their distance from the market price does not reflect trend strength, but a flip of their position may signal a potential trend change.

4

I utilise PSAR modification for every trade I make. A set up of 0.09 - 0.50 is excellent - reduces the lag to minimal - and gives a trade movement signal as the Emi post above. The little balls show the price at that point, and I use on every Time chart while seeking out support and resistance zones, big or small. Helps me place my T/P and S/L on a trend trade.

And until anyone actually uses ‘my version’ within their strategies, they are losing out on a very good signal placement.

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5

exactly its originally purpose :sunglasses:

i may have misunderstood the OP’s use of the word “signal,” above, in imagining he might mean it as a primary method of entering trades :blush:

6

I have not used this indicator and have no idea about that.

7

it was really very good of you to post anyway, and mention that - many thanks: i wouldn’t have been able to sleep tonight, through worry, if you hadn’t so kindly clarified that issue :sunglasses: