Who says cheaters never win? Maybe the Parabolic SAR is not actually cheating, but J. Welles Wilder must have felt like it with his algorithm that allowed him to cheat other traders out of all their money.
Today, most traders use the Parabolic SAR so the advantage you have using it over other traders is not as huge as it once was. But can you imagine the huge advantage Wilder had when he first invented and started using the Parabolic SAR? To everyone who had to trade against him, he was a cheating dog.
Parabolic SAR is a method devised by J. Welles Wilder, Jr., to trade trends. It may be used as a trailing stop loss based on prices tending to stay within a parabolic curve during a strong trend. The SAR stands for Stop And Reverse
The Parabolic SAR mathematically represents the concept that time is the enemy, and unless a stock can continue to pull in more and more buyers, it should be sold.
The Parabolic SAR works best with trending securities, which occur roughly 30% of the time according to Wilder’s estimates. This means the indicator will be prone to whipsaws or headfakes over 50% of the time or when a security is not trending.
Crude oil often bottoms in mid-February and then uptrends through the end of April. It is that early February break that can give traders an edge by buying low in a seasonally strong period. Over the last 28 years, this trade has worked 24 times for an incredible 85.7% win ratio.
Seasonal influen.... More »
The popular trader Jason Bond hit the biggest pay out of his life-time today with a shocking $26,000 win in RSOL. This is Jason's biggest single win, in terms of dollars, of his stock trading career.
For most of us, $26,000 is what we make in an entire year working for someone else.
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What does Japanese Feudalism have to do with austerity and taxation? It turns out a lot according to Armstrongeconomics that published an article with the thesis, "There is no such thing as taxation that ever increases the living standard or economic growth", and "Feudalism emerged in Japan BECAUSE .... More »
The question of how to make money in the stock market has been around as long as the bell has been ringing to indicate the start of the trading day. Everyone has theories, some of which are considerably more valid than others. At the end of the day, however, it boils down to a few primary element.... More »
Have you ever seen a Jackson Pollock painting? Probably.
If you haven’t, it’s a trip: lots of crazy colors, splattered all over the place, with no rhyme or reason to the whole thing. Seeing it for the first time, many people say, “This is considered art?” Quickly follo.... More »