Parabolic SAR indicator

[Oshosondy]

You would have probably know or heard about SAR before. I have been using BB and RSI which indicate oversold and overbought market. But we all know that indicators can fail. All the indicators that I have used before have are not 70% accurate but you can use some strategies and sometimes just wait and let the trade to later favor you if you use low leverage and trading less volatile coins.

So I know SAR is not totally accurate but I think many traders will be using it as I recently see some accuracies about the indicator. It is also more newbie friendly as the down dots point towards a market that the price of the coin will increase, while the upper dots means the market that will be decreasing in price of the coins.

Have you used SAR several times before? How accurate do you think it is? I understand that no indicator is 100% accurate.

[SquirrelJulietGarden]

You would have probably know or heard about SAR before. I have been using BB and RSI which indicate oversold and overbought market. But we all know that indicators can fail.

All indicators fail sometimes to predict the market movements, from Bollinger Bands, RSI to what you just discovered SAR. By seeing this fact, don't rely on any indicator or some indicators to make your trading decisions with over confidence. If you do this, you will lose your money when market moves harsh and indicators fail to protect your positions.

So I know SAR is not totally accurate but I think many traders will be using it as I recently see some accuracies about the indicator.

Your saying is purely vague. Some accuracy, what is this?

I mean you need quantitative saying like, I applied SAR for my trading, with a sample size of 100 trading positions, and the accuracy I had with SAR is 60%, 70% or higher or lower. Let's say about it with more details, then we can discuss.

[Oshosondy]

Your saying is purely vague. Some accuracy, what is this?

I mean you need quantitative saying like, I applied SAR for my trading, with a sample size of 100 trading positions, and the accuracy I had with SAR is 60%, 70% or higher or lower. Let's say about it with more details, then we can discuss.

I used it with 15 minutes range candles and I saw some accuracies. You can see this yourself from the chart below:




Although I tried it with 1 day candles but which was less accurate but not also totally inaccurate if you use a very low leverage.

[crwth]

I have encountered PSAR way before but I haven't used it that much. I remember that it's mostly used to predict trend direction right? IIRC. It's The Parabolic Stop And Reverse hence PSAR.

I think this would be a great thing if you added more indicators and made some confluences with it. It depends on the market as well IMO.

[SquirrelJulietGarden]

I used it with 15 minutes range candles and I saw some accuracies. You can see this yourself from the chart below:

Although I tried it with 1 day candles but which was less accurate but not also totally inaccurate if you use a very low leverage.

You can try any indicator with 15-min candles for your trading but before you find for trading chances, to open your position, make sure you use bigger candles like 1-hr, 1-d, 1-week candle to see risk of big change in the market. If the chart is setting up a pattern, and going to the end of it, it's simply not good time for trading.

Because you will have to use one or some indicators to predict a next market trend. Your prediction can be right or wrong, there is always probability for inaccurate prediction, and if you trade with wrong one, you lose money.

A safer approach for trading, if you see the pattern is going to the end and to decide a next movement, you must wait, and leave the market, stay observing. After market confirms a next trend, you can join it again. By staying outside the market, when you are not certain and market does not decide yet, you save your capital.

[Oshosondy]

I have encountered PSAR way before but I haven't used it that much. I remember that it's mostly used to predict trend direction right? IIRC. It's The Parabolic Stop And Reverse hence PSAR.

Yes, you are correct.

I think this would be a great thing if you added more indicators and made some confluences with it. It depends on the market as well IMO.

I think one indicator for overbought and oversold market which is not an oscillator, another one which is an oscillator and another one which is about market trends would be enough.  But I noticed that I am so use to one indicator despite that I know much about many other indicators.

You can try any indicator with 15-min candles for your trading but before you find for trading chances, to open your position, make sure you use bigger candles like 1-hr, 1-d, 1-week candle to see risk of big change in the market. If the chart is setting up a pattern, and going to the end of it, it's simply not good time for trading.

You can also first check one day candles, then 4 hours candles, then 1 hour candles and check 15 minute candles to finalize your analyses. Also you can not expect scalpers to focus more on hours or daily candles. You can not expect swing traders to focus more on 15 minute candles. Do not use your strategy and the type of traders that you are to just make conclusions. Although the lesser the time range of the candles the riskier the trade.

[Dunamisx]

Have you used SAR several times before? How accurate do you think it is? I understand that no indicator is 100% accurate.

I often use BB and RSI indicators on the chart because they offer the precise indications needed on a particular given average time, to know how accurate they were from the use of SAR, you can set in the three in predicting toward what the market pattern is likely going and guess on the direction as well for the price and you will discover the it will be only SAR that will give a different indication while the other two will be almost accurate in their own prediction, i also think that many finds it more earlier to use the RSI and BB indicators more conveniently than they find with the use of SAR.