STRANGE SIGNAL ON PARABOLIC SAR

[Amu]

Having posted the previous topic "Of What Use Is This Indicator", I retired from using this indicator because of the reason i stated in that tread and because I've not been able to find a good combination of indicators that will help eliminate the Whipsaws.

Just of recent, I discovered something strange about this indicator.You know at times when trying to develop a system, you place an indicator on your chart and keep staring until a clue jumps at you. Then you try to back test and see if it tally with entry/exit modes of trading.This is what I was doing on this wonderful day when I saw something different which I have never seen why using Parabolic SAR and here is it:(NOTE:If you have read the previous tread "Of What Use Is This Indicator"please do so b'cos I'm not going to repeat the basics of Parabolic SAR here)

I discovered that when the parabolic SAR dots starts forming in whichever direction(long/short), it gives a gap away from the candlestick, but at the point at which the market changes direction, the last dot will almost have touched a candlestick, signifying the end of that trend.

HOW TO USE THIS SIGNAL

When you enter a trade, check the Parabolic SAR and make sure it is well gaped from the candlestick.Whenever the dots start getting close to the candlestick, you have to be very careful as the trend MAY be ending.But at the point at which the dot almost touch A candlestick(like the dot on an ai "i"), then be sure that the direction will change on the next candlestick.The next dot will form below or above the candlestick,changing from up to down or from down to up depending on where it was before.Hence indicating the end of a trend as well as the take-of of another.


Can anyone check this out, and give a field back on what I discovered?I would have loved to post some clips of the chart but I don't know how I can do that.Can anyone help with that also?

[butter]

hi amu,
just dashed in real quick. i'll be talking more about this later, but you git the idea right. the p SAR can be used in that way you described.