StockFetcher Forums · General Discussion · Parabolic SAR question<< >>Post Follow-up
glgene
523 posts
msg #37619
Ignore glgene
8/24/2005 1:43:04 PM

I would really appreciate it if someone could tell me the calculation methodology of Parabolic SAR(0.02,0.2). I will use the stock, IWM. Here is the history of numbers:

..... IWM >> Open .... High ....... Low ...... Close ..... Parabolic SAR

8/19/05: ..$65.05 ...$65.16 ... $64.71 ...$65.11 .... $66.20

8/22/05: ....65.24 .....65.54 ..... 64.87 .....65.48 ...... 65.96

8/23/05: ....65.51 .....65.63 ......64.86 .... 65.47 .......65.75

8/24:05: ....65.24 .....66.21 ......65.10 ..... ????? ......64.47
................................. as of 1:04 pm ......

As of 1:04 pm on 8/24/05, the IWM is priced at $65.93. The price has surpassed the Parabolic SAR (of $64.47) and, accordingly, it now reflects as a "buy."

My specific question: How is the beginning-of-day [8/24/05] Parabolic SAR $64.47 calculated? I think you have to use daily info from the day before, and that's why I've showed you the open, high, low, close, and Parabolic SAR from the previous day(s). By the way, I notice the Parabolic SAR number (e.g., $64.47 on 8/24/05) stays constant throughout the day regardless of the stock price movement on that day.

Please, someone, show me the formula (step-by-step) that generated the $64.47 Parabolic SAR number on 8/24/05. [FYI, I use Stockcharts.com to get the Parabolic numbers].

Thanks in advance.

GL Gene




ronun
27 posts
msg #37625
Ignore ronun
8/25/2005 2:13:16 AM

Check out:
http://moneybags.com.au/article.asp?id=218&a=0
This demonstrates why the Parabolic SAR is not a good trend indicator.
Also:
http://www.fongan.net/mtHelp/mtHelpTPage.asp?cn=&hpi=1154
http://www.virtonadvisor.com/eng/indicator_parabolic


glgene
523 posts
msg #37626
Ignore glgene
8/25/2005 5:16:52 AM

I did "not" buy IWM at EOD 8/24/05, despite the Parabolic SAR signaled a buy, for the following reasons:

1) IWM, although up 56 cents intraday, lost 26 cents end of day (EOD)
2) Parabolic SAR was not confirmed by the upward crossing of +DI over -DI
3) MACD (12,26,9) did not confirm a buy
4) CCI(25) ended the day at -70.6 (I use 0 as a crossover)
5) RSI(14) ended the day at 45.3 (I use 50 as a crossover)
6) ROC(12) ended the day at -0.81 (I use 0 as a crossover)

As you can tell, I believe in confirmations. No one signal does it all. That said, if IWM goes up solidly today (8/25/05) then I'll simply look at the above signals again and make a decision. One day at a time.

GL Gene


glgene
523 posts
msg #37628
Ignore glgene
8/25/2005 5:27:51 AM

ronun,

MANY, MANY thanks for your guiding me to the following web site that gives insight on the use of Parabolic SAR as a timing signal:

http://moneybags.com.au/article.asp?id=218&a=0

Great reading!

GL Gene



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