Here will be my trading journal of trades based on my Simple Parabolic system. It is trend-following system, if there's a trend, there will be trades, no trade - patience. Since there is a trend in markets only 30% of the time, trades are not many, just about 2-3 a day.
“My tastes are simple: I am easily satisfied with the best.”
― Winston S. Churchill
As far as, I cannot attach images yet and keep my journal as I am used to doing it, I want to share some insights about Parabolic Sar.
Welles.J.Wilder, author of the indicator, recommeded using it only in trending markets. As it comes from its name, Parabolic SAR - Stop and Reverse, it shows quite good entry and exit points.
In my opinion, Parabolic Sar is undervalued and overviewed indicator by traders and rarely seen as a valued instrument for technical analysis nowadays.
There is a trend in each timeframe, so there is a good use of Parablic SAR even in small timeframes. I will show it further with the screenshots of my trades. But if you cannot define trend and use Parabolic SAR in correction phase of market, then chances are good that it will lead you to loss.
I use Parabolic Sar for entry and exits.
Moving Averages and Stochastic for defining trend and correction.
Last edited by AAlekperov; April 6th, 2012 at 12:59 PM.
Yes you can. Click on the word screenshot in my post to learn how to do it.
Due to time constraints, please do not PM me if your question can be resolved or answered on the forum.
Need help? 1) Stop changing things. No new indicators, charts, or methods. Be consistent with what is in front of you first. 2) Start a journal and post to it daily with the trades you made to show your strengths and weaknesses. 3) Set goals for yourself to reach daily. Make them about how you trade, not how much money you make. 4) Accept responsibility for your actions. Stop looking elsewhere to explain away poor performance. 5) Where to start as a trader? Watch this webinar and read this thread for hundreds of questions and answers. 6) Help using the forum? Watch this video to learn general tips on using the site.
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Simple Parabolic system - is not only certain rules of technical analysis, it is my peculiar view of the market.
There are many sets of tools for tehcnical analysis - Fibo, waves, murray, gann and etc. But my position is strict and unequivocal: Market doesn't know about these tools - it doesn't move on waves, not on fibo, and etc. These waves, fibo, murray and etc. - are drawn only after the movement and of course, but in no way before. I am not underestimating the value of these tools of TA - I am just talking about my view of market.
For me, Market consists of only two parts which are - Impulse and Correction. Of course, there are support and resistance levels because of Volume (Both time-price based and price based). They influence the market, and this is a fact. But for the ambiguity of their interpretation, I don't use them in my trading.
Nevertheless, levels are created and influence the movement of derivatives, so it is necessary not to ignore them.