Parabolic SAR

[Fabianov]

How can i use parabolic SAR for trading? I use it as levels or support/resistance. Is it ok?
Can i use it in a different way?

 

[sgsaxton]

How can i use parabolic SAR for trading? I use it as levels or support/resistance. Is it ok?
Can i use it in a different way?

Depending on the markets behavior, I 'll sometimes use it for exits. Other times I use price or time.

 

[wwatson1]

It was designed as a trailing stop indicator that gradually tightens the stop the longer you are in the trade.

I Would not consider using it for a purpose other than the one it was designed for.

You wouldn't use a hover to cut the lawn would you??

 

[sgsaxton]

It was designed as a trailing stop indicator that gradually tightens the stop the longer you are in the trade.

I Would not consider using it for a purpose other than the one it was designed for.

You wouldn't use a hover to cut the lawn would you??

I agree but even then with discretion, based on price action. It can stop you out even though the price is going your way, just because it ratchets down over time. I've also used the Linear Regression in a similar way, but that too can do the same thing. While we're on that subject, what is the/a good way to use the Linear Regression. I've been using it to measure entries/ exits based on strength/weakness at Support and Resistance levels, but can be quite quirky.
Any ideas?

Steve

 

[RUok]

Something I have found useful when using the Parabolic SAR is to only "listen" to a buy or sell signal (reversal) when the DMI indicator confirms.

For example, if PSAR goes negative (moves above price), don't sell unless DI- is above DI+.

 

[Tabasco]

I think the Parabolic SAR is not a relaibale indicator at all

 

[sgsaxton]

I think the Parabolic SAR is not a relaibale indicator at all

That depends on what you use it for, how you use it and what your definition of reliable is. Price by itself is unreliable. At any given point in time it can do anything. A moving average crossover is unreliable by its self and means very little but at a support or resistance level it can mean a great deal.