i see your psar and i show you my stochastic he just left 90
custom stochastic? I cant find a stochastic oscillator that has touched 90 today.
Topic: PSAR is the holy grail of indicators (Read 6140 times)
custom stochastic? I cant find a stochastic oscillator that has touched 90 today.
Well if this is the holy grail look out below...
Dont fight the holy grail guys...
It seems to be saying... 'wait'.
The little circles represent lemmings falling over a cliff...
Apparently they had a little velocity.
On another note, last night I was looking at my holdings thinking "This long position looks very vulnerable... buy hey the bid wall looks strong enough"
You see the one skidding towards the edge? That's me. I'm half man half bear half lemming.
Interesting, have been thinking "vulnerable" since the Jan 18 crash.
Last night I sold some silver on the "Goods" Forum for payment via BTC. I usually immediately convert BTC proceeds to USD, but for some reason
I forgot about it. And lo and behold, the Smack-Down Witch releases the flying monkeys this morning.
It seems to be saying... 'wait'.
The little circles represent lemmings falling over a cliff...
Apparently they had a little velocity.
On another note, last night I was looking at my holdings thinking "This long position looks very vulnerable... buy hey the bid wall looks strong enough"
You see the one skidding towards the edge? That's me. I'm half man half bear half lemming.
It seems to be saying... 'wait'.
The little circles represent lemmings falling over a cliff...
It seems to be saying... 'wait'.
Hmm, I thought I'd stop by and say a word about PSAR.
-If you're using it as a trading system, here's the 10 year backtested performance in the EURUSD on daily charts
-Use it as a stop, not a trading signal (it was never design to be an entry signal)!
-If you're using it as a trading system, here's the 10 year backtested performance in the EURUSD on daily charts
-Use it as a stop, not a trading signal (it was never design to be an entry signal)!
SELL SELL SELL!
indicators don't indicate, it's all psychological
PSAR = rabbit foot
PSAR = rabbit foot
PSAR seems a good idea until you see it whiplashing either side of the value. As just mentioned good for strong trends, but go sideways and it's not worth a damn. I suppose it would be possible to try to use it to indicate exit points.....but I'm just not all that keen on it.
Indicators stop indicating once they become known.
The truth is, many of the well-known indicators do work in practice, even though they're "known." This is a common myth about technical analysis. In fact, the fact that many people follow them makes them self-perpetuating, which serves to reinforce their usefulness.
One need only look at Goomboo's backtesting of the 10/21 EMA rule in order to see that simple and well-known things can still work.
I guess "followed" would be a better way to put it. If I write a bot that follows the 10/21 EMA rule today, I'll get clobbered, because now people are following it, and their act of following it will cause the indicator to not work any more. Just because it is an old and well known indicator in the real world isn't really the problem, but now that it is a known indicator here it will no longer work here.
If everyone used it, and everyone received a "Buy" signal, then everyone would buy, and the price would shoot up.
Similarly, if everyone used it, and everyone received a "Sell" signal, then everyone would sell, and the price would drop like a rock.
The only fools would be the ones NOT using it. That's what ineed is talking about when he says it is self-perpetuating.
Heh. Try it then.
Also, Buy and Sell are opposite views of the same thing. You can't have one without the other.
Indicators stop indicating once they become known.
The truth is, many of the well-known indicators do work in practice, even though they're "known." This is a common myth about technical analysis. In fact, the fact that many people follow them makes them self-perpetuating, which serves to reinforce their usefulness.
One need only look at Goomboo's backtesting of the 10/21 EMA rule in order to see that simple and well-known things can still work.
I guess "followed" would be a better way to put it. If I write a bot that follows the 10/21 EMA rule today, I'll get clobbered, because now people are following it, and their act of following it will cause the indicator to not work any more. Just because it is an old and well known indicator in the real world isn't really the problem, but now that it is a known indicator here it will no longer work here.
If everyone used it, and everyone received a "Buy" signal, then everyone would buy, and the price would shoot up.
Similarly, if everyone used it, and everyone received a "Sell" signal, then everyone would sell, and the price would drop like a rock.
The only fools would be the ones NOT using it. That's what ineed is talking about when he says it is self-perpetuating.
Heh. Try it then.
Also, Buy and Sell are opposite views of the same thing. You can't have one without the other.
One more link with explanation of PSAR and how to use it, very helpful:
http://www.stockwatch.com.au/articles/technical-analysis/psar.aspx
http://www.stockwatch.com.au/articles/technical-analysis/psar.aspx
Indicators stop indicating once they become known.
The truth is, many of the well-known indicators do work in practice, even though they're "known." This is a common myth about technical analysis. In fact, the fact that many people follow them makes them self-perpetuating, which serves to reinforce their usefulness.
One need only look at Goomboo's backtesting of the 10/21 EMA rule in order to see that simple and well-known things can still work.
I guess "followed" would be a better way to put it. If I write a bot that follows the 10/21 EMA rule today, I'll get clobbered, because now people are following it, and their act of following it will cause the indicator to not work any more. Just because it is an old and well known indicator in the real world isn't really the problem, but now that it is a known indicator here it will no longer work here.
If everyone used it, and everyone received a "Buy" signal, then everyone would buy, and the price would shoot up.
Similarly, if everyone used it, and everyone received a "Sell" signal, then everyone would sell, and the price would drop like a rock.
The only fools would be the ones NOT using it. That's what ineed is talking about when he says it is self-perpetuating.
Added this indicator in conjunction with GoomBoo's 5 Day / Hourly chart (10/21 EMAs).
Might be helpful in finding exit points
Might be helpful in finding exit points
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