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To: Spark who wrote (15997)12/28/2000 11:14:45 AM
From: Jeff  Respond to of 19297
 
the sar means nothing until it is "hit".....then its a trigger signal to buy or short.....

as long as the sar is above.....the stock can fall forever.....and when the sar is below.....a stock just keeps rising......

thats why its called " parobolic sar " .......nothing is defined till its triggered on a hit......then you can expect a trend change....



To: Spark who wrote (15997)12/28/2000 11:29:22 AM
From: Jeff  Read Replies (2) | Respond to of 19297
 
a perfect example of what i just said......

look at the 2-month chart of OMKT......

you will note that at points it looked like it would have a hit.....so close...but until it actually made the hit.....did the trend change up.....

then when it had a bottom hit.....the trend resumed down.....

its that basic....and that simple.....you don't have to guess on a hit......you just wait for the hit and decide from there......or you can make it complicated and come up with your own interpetation.....roll!!!

bigcharts.com