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Posted On: 03/29/2017 11:24:09 PM
Post# of 215
$ROX, looking at the charts, the 15, 30, 60, and 120 min, daily, weekly and monthly Psar's have all flipped down. The highest Psar in the 1, 2, 3, 5 and 10 min is $1.39. If we break $1.39 without a big dip first ( below 1.33, 15 min chart ) all of the time frames will have flipped down. Keeping in mind that as the price rises the Psar's follow and a midday dip could flip 1 or 2 back up on the intra day charts.
Why is this important?
In stock and securities market technical analysis, parabolic SAR (parabolic stop and reverse) is a method devised by J. Welles Wilder, Jr., to find potential reversals in the market price direction of traded goods such as securities or currency exchanges such as forex.[1] It is a trend-following (lagging) indicator and may be used to set a trailing stop loss or determine entry or exit points based on prices tending to stay within a parabolic curve during a strong trend.
Similar to option theory's concept of time decay, the concept draws on the idea that "time is the enemy". Thus, unless a security can continue to generate more profits over time, it should be liquidated. The indicator generally works only in trending markets, and creates "whipsaws" during ranging or, sideways phases. Therefore, Wilder recommends first establishing the direction or change in direction of the trend through the use of parabolic SAR, and then using a different indicator such as the Average Directional Index to determine the strength of the trend.
A parabola below the price is generally bullish, while a parabola above is generally bearish. A parabola below the price may be used as support, whereas a parabola above the price may represent resistance.[2] These parabola may be used as price areas for stop losses or profit targets.
Why is this important?
In stock and securities market technical analysis, parabolic SAR (parabolic stop and reverse) is a method devised by J. Welles Wilder, Jr., to find potential reversals in the market price direction of traded goods such as securities or currency exchanges such as forex.[1] It is a trend-following (lagging) indicator and may be used to set a trailing stop loss or determine entry or exit points based on prices tending to stay within a parabolic curve during a strong trend.
Similar to option theory's concept of time decay, the concept draws on the idea that "time is the enemy". Thus, unless a security can continue to generate more profits over time, it should be liquidated. The indicator generally works only in trending markets, and creates "whipsaws" during ranging or, sideways phases. Therefore, Wilder recommends first establishing the direction or change in direction of the trend through the use of parabolic SAR, and then using a different indicator such as the Average Directional Index to determine the strength of the trend.
A parabola below the price is generally bullish, while a parabola above is generally bearish. A parabola below the price may be used as support, whereas a parabola above the price may represent resistance.[2] These parabola may be used as price areas for stop losses or profit targets.
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