Good Morning,
Time for a little shake up here:
Arvydas:
you mean, close the position when opposite SAR dot appears is great idea? i am thinking, isn’t it to late?
No offense - but you obviously have just ‘skipped’ to the end of the thread - otherwise you would not be asking this question or making this statement. Please don’t think that I’m being full of ‘s**t’ when I say this to you - read THE WHOLE THREAD first - if you just jump in and use this, or any other indicator, without knowing what’s really going on, you’re ‘f****d’ and you will lose money. There are a lot of people on this thread that have read and re-read the thread and then posted some extremely useful and insightful ideas and by just ‘skipping’ to the last page you’re missing out on a whole lot excellent information and ideas (one of them being the exit strategy to which I refer).
I’m also curious to know why you think that ADX is ‘not a bad filter’? (Sorry - I know it looks like I’m ‘banging’ on you - I’m not - I’m just curious to know why you say that). The reason I’m curious is because on all of the charts that I looked at yesterday - and believe you me I looked at a lot of charts - there were (probably) hundreds of trades that you would not have taken - because ADX was conflicting with Parabolic SAR - and the trades I’m talking about (that you would have missed) all turned to some serious cash and the losses made on the trades that ADX MAY have kept you out of were negligable from what I can see.
I am going to attach some charts later on today to demonstrate (my take on) the above so feel free to comment.
Hello pip huntter:
The indicator you are talking about is the Alligator indicator developed by Bill Williams. I have used this indicator before as it forms part of his ‘Trading Chaos’ trading methodology or ‘system’.
You make a point - I’ve never tried to combine it with Parabolic SAR.
For those of you who don’t know the indicator - basically - when all the lines are intertwined - it means that the ‘Alligator’ is ‘sleeping’ i.e. the market is ‘sleeping’ i.e. there is no directional movement i.e. there is no trend. When the lines start to seperate and then all start to move in the same direction then the ‘Alligator’ is awake and ‘hungry’ and ‘hunting’ and a trend has started (those descriptions are from Bill Williams himself by the way - I did not make them up).
One thing that a lot of people DON’T know about the Alligator indicator is the significance of the three MA lines i.e. each MA line represents the same MA line on one ‘significant’ timeframe down. In other words - if you are looking at the daily chart - the blue MA pertains to the daily chart - the red MA pertains to the four hour chart - and the green MA pertains to the one hour chart. In other words - the indicator is telling you - on one timeframe - what is (would) be happening on one and two ‘significant’ timeframes lower in addition to what is happening on the currently displayed chart. Interesting hey???
Anyway - Akram - thanks for that - let’s check it out (although - ‘horror of horrors’ - Delta does not have the Alligator indicator as part of the standard set of available indicators - but - I suppose I could ‘program’ it in i.e. it really is nothing more than three MA’s which have been ‘tweaked’ as it were).
Akram - I’ll leave it to you - let us know - I want to post some charts - to prove my point about ADX - OR - maybe to get some input on ADX - because - maybe I’m missing something. I mean - I find it extremely strange that Wilder HIMSELF advocates the use of ADX WITH Parabolic SAR and yet - I can’t see the point.
One thing that keeps ‘nagging’ at me - is there INDEED a difference between the movement of forex pairs and stocks - and - if there is - does this affect the ‘performance’ or ‘validity’ of a certain indicator?
Having said that though - in this case - both Parabolic SAR AND ADX were developed by J. Welles Wilder Jnr. - and he ONLY traded commodities - and - as we have already seen - Parabolic SAR works (like nothing else) on forex pairs!!!
Anyway - let me get to those charts.
Regards,
Dale.
