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Strategies & Market Trends : Ask Vendit Off-Topic Questions

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To: Walkingshadow who wrote (2948)12/24/2004 12:44:45 AM
From: Gush  Read Replies (1) of 8752
 
the " parobolic SAR" is those little dots running above or below the price trend......now in simple terms.....when the dots are above the price.......the price is trending down......and when the dots are below the price line......an uptrend should happen.......

so.....go long below......short above.......

and you can think of this as a " trigger" to take a possible position.......

example......say a stock you are watching is 3.00.....and its been downtrending so the " dots" are above......but now the " dots' are say at 3.25......so you are watching that stock during the day.....and you notice its at 3.30.....well you know the stock triggers a "SAR" hit at 3.25......so you jump in because the trend may have just changed to an "uptrend"......because once the price hits the SAR.....the trend can change.....and the next day especially will likely be up.......and it could be the start of a bigger run as long as the "dots" stay below the price......its not always reliable of course......but if you are watching when that trigger first hits......you are likely in the money the next day......

same for shorting a stock......SAR is below in an uptrend.....price falls and hits the "dot"......next day or so the dot will be above the price signaling the possible beginning of a downtrend......so thats a short trigger......

all you gotta do is plug in a bunch of different stocks and see the patterns......you will get the idea of how it works real fast.....
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