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Parabolic

Trailing position using Parabolic SarTrailing position using parabolic sar. I'm the fan of very tight stop losses, the negative side of it is that they are triggered a lot. But, in a long run it's easy to keep a positive account statistics and psychology wise it' very easy to overcome this occasions, as losses are never big. I'm a day trader, and stop losses are so important in a short term trading - it's unbelievable. I will review several approaches with the use of different tools in my future posts, but will start probably with the easiest one. Parabolic Sar, a very easy to use indicator created by J. Welles Wilder, Jr. and instead of using it for entries, in the modern world it is used to trail open positions. In a short words, with every new dot a stop is moved to this dot with a candle's close. The good thing about using stop losses based on this indicator is that the stop ls wide in the beginning and it's tighten up with every new candle, so it keep's your position in profit in case of the market uturn. Some traders are using one dot before the last one, When I'm using this approach I'm using the last one. When my stop loss is triggered I'm not worrying about r/r But for those who are so focused in a risk reward I will tell just one thing - the less negative stop losses you will et, the easier it will be to keep the account positive. We always have to get into positions as into potentially loosing trades, and reduce our risks. No matter how many times you will miss a large move, the only thing you. An control for sure - is your stop loss, always remember it. Not using stop loss will lead your account to 0 in a marginal trade, no matter what.
by Marenno
BTCUSD developing a healthy bull trendBitcoin is at a huge juncture at $300 and it looks very close to breaking through. Plenty of room for upside and once it cracks that $300 mark, it's on like donkey kong. Depending on the risk you can handle, you can pick a stop-loss at various levels. I'm personally keeping a pretty tight stop-loss below the breakout zone on a 2h scale because I believe this is going to happen very quickly once it breaks. When the price pops, we will see a quick run to the upper $300s before a retrace. If and when this occurs, I plan to play both sides of it. We can see volume supporting this trend on a daily time frame, but also on shorter time frames as well, with steadily increasing volume accompanying steadily increasing price. What's more, the speed of the trend seems to be increasing, although we obviously haven't reached climax levels yet, which would be indicated by huge volume and very fast upward price action. This would also be a good indicator that it's time to fold our longs and begin shorting. Good luck!
BITFINEX:BTCUSDLong
by MoonTrader
21
Using Parabolic Sars and Squeeze Indicators IntradayGILD - 3 min intraday chart. Indicators: Squeeze Momentum, Parabolic Sar, and VWAP These are new indicators for me, so I did this to help me to interpret and utilize them to execute an intraday trade. First, here is a brief overview of the Indicators used in this chart. The Squeeze Momentum Indicator is made up of 2 components: Graph Columns and Stars. The graph columns show the direction on the trend and the intensity. Bright Green is uptrend growing intensity. Dark green signals a loss of momentum and the reversal to the downside. Bright red is a downtrend growing intensity. Dark red signals the loss of momentum and reversal to the upside There are 2 colors of stars. Red is the squeeze. Grey is the release. When the stars go red to grey, it results in powerful move up or down depending on the color of the graph. Generally, you can enter a trade within 1-3 grey crosses, and exit a trade by 3rd red cross. Parabolic Sars is really simple. If the price is above the green dots, you can go or stay long. If the price is below the red dots, go short or stay short. VWAP: I basically use this as a line in the sand. Note: you could use moving averages, but I found that they just made it too confusing, and more difficult to read with no added benefit. The red and green boxes mark the entry and exits of the possible trades. Ok, so executing the trades. I skip the first 15 minutes to allow for a proper setup. At 9:45 we have a grey cross within the red graph, the price is below the red dot, and the VWAP, so go short At 10:33 we have the 3rd red cross and the the graph is dark red, so you cover. (Short 16 bars/48 min) At 10:39 we get a grey cross, so go long. (You could have a more conservative entry by waiting for the 2nd or 3rd grey cross). At 10:54 the price moves over the green dot. There was also a higher high, so you stay in. At 10:57 the price is rejected by the VWAP, and it is the 3rd red cross on the squeeze indicator. At 11:09 it is rejected again by the VWAP, it had a lower high, and we are now on the 7th cross, so it's time to sell. (Long for 10 bars/30 min). It continues squeezing until 11:39 when we get an explosive move up! It goes up over $1.50 in 1 candle. It blew though the VWAP, and price is above the green dot, so go long. Between 11:57 and 12:00 there is a small pullback, so you could take some profits, but there is no need to exit the position at this point. At 12:12 The graph changes to dark green (loss of momo), there was a lower high on the last bounce, and it is also the 2nd red candle consisting of mostly tail at the top, so it's time to sell or reverse your position and go short. (Long for 11 bars/33 min) At 12:15 you have either reversed your previous position, or you are entering a short here. You are on the back end of the move, you have a confirmed lower high, the price is blow the red dot. 13:12. A higher low was put in, and the dark red graph is getting smaller, so it's time to cover. (Short 20 bars/1 hour). At 13:18 a green dot appears blow the price, so you go long) or you could have reverse your short position 6 minutes ago depending on how aggressive you want to be). At 14:36, the graph is dark green and close to the midline, so it looks like it is just going to go sideways the rest of the day, close out the position, and keep watching it. (Long 26 bars/1 hour, 18 min). The red crosses on squeeze momentum indicator stayed for the remainder of the day, and the graph stayed near the midpoint, so there was no momo in either direction, so no further trades were made.
NASDAQ:GILD
by JFR_Trading_Systems
3