Parabolic SAR - Yeah, No. But Maybe.

Brilliant VP. YT comment readers I don't use the SAR as an exclusive continuation indicator, but as an early warning sign for my main continuation indicator that a re-entry point might be on the cards. Working out well for me and my system. But, as VP says it could used in exactly the way described in the video.

Thanks for the upload. The examples you showed helped alot.

Interesting. As I have continued to test, I have found that moving the 0.2 to 0.09 in the settings, it acts similar to many of the trend indicators, since the "flip" doesn't occur until the trend is more well established. I have not tested this as a continuation indicator on the more traditional settings. I am not saying it is the best indicator, and I am guessing as I continue to test I will find superior ones, but in coordination with a couple other indicators it has contributed to profitable results to this point. I do agree that the 0.2 setting does not work well at all for trend trading purposes.

This indicator isn't very valuable and gives false signals.
EDIT: Sorry this one is just bad this one is terrible. Just look at any chart on 4HR - Daily. Look at the percentage of winning entries

Hello VP, your videos are simple, direct and straight to point. Please, can I get the order for watching all your videos? ie; like a coarse outline or so.

I know a +20-year trader who's made millions with SAR's. He doesn't just use the default settings and he uses more than one SAR. He's got a cool setup.

He just doing Gods work spreading love

i've considered giving my broker the green light to auto-trade certain contracts (grains and livestock) using his SAR signals but i'm having a hard time accepting the fact that i'll have multiple trades that will last days or weeks before getting stopped out at a loss, in pursuit of eventually hooking a long term trend. it's unavoidable with this methodology/system. even though it should produce good results long term (for commodities - not sure about fx pairs), i just know the temptation to tamper with the stops will be too great (for me). using it alongside another 2nd, longer term guide like a MA or DMI could make sense, but that contradicts the whole basis of his calculations (ATR, ARC, AF, SIP, SIC) and would likely take my eye off price action long enough to distract me. if you read wilder's book, you'll understand why the stops are so far away - they are intended to hook a trend in commodities, and remember it was written before the average commodities trader could participate in overnight activity. since the stop is a reversal, it takes into account a smart potential entry for a reverse. for that reason, i think the SAR methodology/system could work well for currencies if you trade smaller position sizes, and stay patient with the game plan. it's not for me, and i can't imagine the typical fx trader getting excited about it.

Parabolic SAR, i only use the bottom dots when trading long positions, i dont care when it flips, i use it to adjust my stop loss according to the bottom dots, it is bad as a reversal indicator but great for stop loss indicator.

Awesome like always

Thanks for talking about the losses part being more than the wins due to scaling out. I have been forward testing for awhile and only understood this part after repeating all your videos and having the experience of forward testing.

I think MA-14 do better then kijunsen

thinking outside of box, great and fruitful video again. THANK YOU VP

Don't ever underestimate this indicator or the content of the video! Thank you VP

I take trades from the SAR INDICATOR after is has 5 plus consecutive loosing trades in row. you can use 6,7,8 loosing trades in a row.

Sar means shit in my language (hungarian) 😂

Ok sir. Noted. Thank you.

This to me was the most heart felt episode man...probably one of the most important lessons on he best channel in the world. DUDE, YOU'RE LIKE...THE THENOS OF FOREX!!!

When I first started trading, I thought I had found the holy grail with the P-SAR. It did help me see reversals and get into trades a little better (disclaimer: trading stocks, not forex), and I think it possibly has some redeeming value as a third-level confirmation entry indicator (would never use it for exits). In addition to that, I didn't see virtually any other traders using it, and thought it therefore might offer an edge. But ultimately I found it gives too many false signals and definitely does not work as a standalone answer to trading, especially in a choppy market. Worst of all, the dots can actually change after a day or two! Giving a totally wrong signal. That's no bueno, so I had to ditch it in favor of other, better systems.

omg the intro was epic!

Its good if you use 4 other indicator to confirm it

Thanks for these vids VP. It's really helping me out.

This thing should be accompanied with a 200 period moving average indicator

I have been trading for like 6 months now and just about every trade backfires and slap me in the face. Nearly impossible for me to catch more than a few points. I try to do top down analysis but it doesn't work for me .I say to myself,clearly I'm in the 90% that lose money,so I opened a demo account,do my analysis,then take the opposite of what I would normally take and get the same result. I'm starting to feel hopeless,any advice for a struggling trader?.

The Parabolic SAR works well for capturing profit targets by entering the trade during a trend in a steady market. .

Aww I just earned from trading never believed in it before

Who are you so wise ??!? God damn I'm addicted to your wisdom.

J. Welles Wilder Jr. left the room

Hi Vp!!! i understand your trading approach very well. It does make sense. It is not because the parabolic sar or the dirty dozen that you so-called does not fit with your trading style that those tools are not good. in forex there are thousand upon thousand of way to trade the market. Each of us decide the type of pattern that they want to trade. that being said, there are pattern that works fine and very well with those indicators that you called trash. working fine here does not mean that the indicator is flawless. No tools is perfect. However, what we are looking at is edge. That's all. i have seen people turning $1000 to 12K in less that two month of trading with those indicator that you are looking down on. even i myself i turn $400 into 4k in less that two month.

What about using p. Sar as stop loss?

VP MY MAN YOU ARE MY SAVIOUR!!!

I am neither very positive or negative against this indicator, but at least it is better than price action (in terms of making trading more enjoyable). Some people say it should be combined with Ichimoku. I just saw a video that tested those 2 a 100 times. It managed 35 %. Not very great, but then again his exit strategy was also based on PSAR.

As for the continuation I have not thought about that before. Although I have noticed it many times. I see a downtrend, 1 dot switches below, the next candle the dot is back on top again and the downtrend continues. I have another continuation strategy which I suspect will happen often simultaneously with the dot switching side in a trend. It is alligator and price hitting blue line. If price reaches green line you enter. That strategy has some success.

I don't think I will use this indicator in the future, but I am curious anyway to see what it can do. Also it is important to remember that the settings can be adjusted. I have forward tested it 23 times on its own. It did quite much very bad. About -180 pips.

if you find the right pair it works better then the ones you showed, i use it as an exit indicator for showing trend continuation, it works very well

Plot twist, the SAR stands for Semi Autonomous Region

Could you use parabolic sar as a baseline??

Good stuff!

HOWEVER. word of the decade

SAR should never be used as an entry signal ; only as a trailing SL, at most

on nasdaq: start0.02 increment0.02 max value1.2 on the min chart. take every trade it gives and on 50$ on the index is the exit, the same is for the sl, have to use a trailing stop from the beginning, at first big bar on the movement you place the sl under it.
wake sar sleep repeat

🤍🖤🤍

P-SAR is a repainting indicator. End of story.

Parabolic SAR is nothing for manual traders, but for automated trading, where you swing up and down with the signals... check it with Backtesting.

I paper traded XAU/USD, Sar with a volume indicator, it gave me about 70% win rate.

Do not waste time.

Thank you so much. I'll try this with fractals and Bollinger Bands.

Just come across this video. Though you don’t recommend, my recommendation is that it SAR is a good tool. The gist lies in multiple time frame, you start with day chart, then 4 hr chart, then 30 min then 15 minute n perhaps 5 minute n you can devise a short term trading plan. Also like computer programming, some people like the word coding, your plan must include a lot of “what if” hopefully this will help you to think 😂😂😂😂😂😂😂😂😂

I think if you used examples on M15 you would've shown better examples of using the P-SAR compared to the daily. Maverick FX recommends the P-SAR on M15 for trending markets in relation to pullbacks and rallys