StockFetcher Forums · General Discussion · DMI and Parabolic SAR magic<< 1 2 3 4 >>Post Follow-up
EWZuber
1,373 posts
msg #38789
Ignore EWZuber
11/9/2005 1:53:05 PM

Parabolic SAR appears to be an indicator that mimics trendlines. The website you posted uses it with DMI+ DMI-.
The principal is very similar to the one I use with trendlines and stochastics and appears to get very similar results.


judgetrade
106 posts
msg #38794
Ignore judgetrade
11/9/2005 5:37:22 PM

riggs, please!

Which of the above filter's is the correct filter you mean that changed your life?

Thank you :-)

Best Regards

Andreas



txtrapper
548 posts
msg #38796
Ignore txtrapper
11/9/2005 6:32:20 PM

Noahedwinbeach2 6/27/2005 9:26:26 PM

that ok to sell and ok to buy thing isn't correct.

ACI for example. If a stock's parabolic crossed over but the DMI never reversed in the first place that means the stock is a hold if you had already owned it but it is not currently a buy. For example the stock went down on ACI and the parabolic switch to the topside but the +DMI never went under the -DMI so this stock was a hold. Only when the +DMI crosses under AND the parabolic crosses to the topside is a stock a sell. I would never buy a stock at this point because I consider it too late. I consider this stock a buy at 5/27/2005 when the parabolic crossed AND the dmi crossed like I explained in my first posts.

------------------------
ACI should have been sold on the first "red candle" below previous days low @ $78.46 looking at 3m/d chart, saving a lot of your profits. The DMI signal to sell on 3m/d chart was at $76.65 way too late IMO.


TxTrapper



riggs
313 posts
msg #38800
Ignore riggs
11/9/2005 10:20:59 PM

Judgetrade -

Hey man, it's a very simple filter. It's not a matter of which filter is best, it's the system that's awesome. THERUMPLEDONE, made it easier to find the winners, but it can be done with a simple filter like this.....

Fetcher[show stocks where +DI(14)crossed above -DI(14)and Paraboli Sar crossed below close 1 day ago and average volume(30)is above 300000 and MACD(12,26)fast line is above MACD(12,26)slow line and draw IFT(5,9) is below 0.5 and draw ema(9)draw ema(18)add colume industry and add column PE and offset 3 days]



Now to answer your question, it was 'TRO'first filter that made me jump out of my seat. My filter is just a different way to play with this system, but I would still go with what TRO programmed in the first place. For you newbe's, this system will take away all the T/A clutter you might be experiencing or experienced in the past.

RIGGS


TheRumpledOne
6,358 posts
msg #38804
Ignore TheRumpledOne
11/9/2005 11:11:20 PM

"BTW, I would like to know what TRO really thinks of this trading system himself. So If you have the time man, what are your thoughts? "

What do I think? All I need is RSI(2) < 1.

Whatever works for you is all that matters.

It's not what you trade but how you trade it that counts.

I have a small "herd" of stocks that I "milk" everyday. You find a few good traders and if you milk just one for $1 a day and you trade 1,000 shares, you make over $200,000 a year. It is so simple.

Most traders should just trade the same stock over and over and over until they master trading. Then it won't matter what filter you use because you will be able to trade properly and profitably.... That is all that matters.

MAY ALL YOUR FILLS BE COMPLETE.

P.S. I write filters for others because I can. It's tough learning all the SF tricks. I remember what it was like when I first started. That's why I have created so many displays so others don't have to start from stratch. But there's no way I could possibly use all these filters AND trade.



glider
59 posts
msg #38850
Ignore glider
11/12/2005 5:00:04 PM

Noah,

Can you give us an update on this filter and it's performance now that you've been using it for a couple of months. You were very positive about it then. Backtesting can be useful but nothing beats real life trading.


Noahedwinbeach2
135 posts
msg #39959
Ignore Noahedwinbeach2
1/5/2006 5:36:30 AM

ok..I haven't been on here in about 2 months so I will give updates. I recently went back to a using the cup and handle method for picking stocks. However using the Parbolic SAR and the DMI comes in handy when buying on dips. If buying a stock that is in a current uptrend but is correcting due to a market correction then I find the Parabolic SAR and DMI combo very useful.

I just came out of a trade with NTRI. I bought at $33 recently after it broke out of what I consider to be a handle. However, after being up 31% I was ignorant and didn't take profits when I should. The stock crashed hard with the market and I sold before I felt I would lose money. I ended up making only 4% off the stock. I will confess to the audience I have become awsome and picking stocks and exact entry points. I hoever have not mastered selling. I am on a quest for learning. It is not good enough to pick winners if you do not know when to sell. I will be posting a seperate post explaining my entire trading method. It is very good and very simple. I do not day trade because I do not have time nor do I enjoy the small gains. I enjoy larger gains on 1 stock at a time. It is less headache to me and I can enjoy a 60% gain atleast every year in my portfolio. It is true you could trade 1000 shares and sell after a $1 gain but what capitol did you start with? If you trade a $50 stock and it gains 2% or $1 you would make $1000. That however is 50k you would have invested. Assuming you could do that every day of the week you could make awsome money. However it is foolish to assume you could do this with no flaws ever. It seems much easier to trade just 2-3 times a year and make 20% a trade off good momentum stocks when the market is really moving. That would still yield a person a fortune in a short while. Patience is key to wealth building.


TheRumpledOne
6,358 posts
msg #39969
Ignore TheRumpledOne
1/5/2006 11:09:43 AM

"I am on a quest for learning. It is not good enough to pick winners if you do not know when to sell."

When to sell?

That's MONEY MANAGEMENT.

Remember...

You can always sell PART of your position.

If you were up 30% and sold 1/2 (or some other fraction of) your position, you would have LOCKED IN some profit. You can then "afford" to let the rest ride with a breakeven stop knowing no matter what happens next you have booked/banked profit.

Well, of course, if the stock blows through your stop or gets a trading halt, you're screwed!! But that's trading!!

When to sell?

When your exit indicators tell you to!

Is daily rsi(2) > 99?

Did the stock close below a flat or falling daily ema(5)?

Haven't I warned you about being GREEDY?

MAY ALL YOUR FILLS BE COMPLETE.





veloman
10 posts
msg #41670
Ignore veloman
modified
3/2/2006 3:22:25 AM

edit. found the answer to my question.


mgazda
13 posts
msg #43593
Ignore mgazda
5/9/2006 10:54:14 PM

I know this is an "old" thread, but I just wanted to alert anyone who is interested in a trading blog I set up a few months ago that trades the "magic" SAR/DMI combination. I call it "The Flip."

The stock must be in an uptrend. Buy when both indicators confirm the other and hold until the reverse occurs.

I have discovered two intersting points.

(1) If the stock became a "sell" on the SAR but not the DMI, you didn't sell (of course). But if you found the stock out (on StockFetcher, or StockCharts)as the next SAR buy signal was given, and the DMI has stayed positive, you can get in. The uptrend is so powerful that the stock should continue to climb. Uptrends seem to make the "DMI must cross from negative to positive" rule unecessary.

(2) I'm in the process of tweaking my sell rules to be when the stock closes 2 days below the 50 day moving average, NOT when the DMI flips negative. Again, in uptrending stocks, the 50 day was great support and the DMI would have made me trade twice when I could have just stayed in it longer.

Anyway, the blog is...

http://stockmonster.blogspot.com

Hope it helps your trading!

Mike


StockFetcher Forums · General Discussion · DMI and Parabolic SAR magic<< 1 2 3 4 >>Post Follow-up

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