The first chart is yours for DIS. Note where you’re forcing BC to flag the lookback low, and I’m assuming you’d have gotten in on 12/30.
This chart is how I’d chart DIS (with my current version of HA Smoothed). Note that I force BC to flag a different day for the lookback low and my Two Dots rule would get me in one day later than you on 01/03.
An aside: My dots are bigger than yours, because I change the default size.
I am following along on this thread trying to learn from you all, but also “make it my own”, so to speak. Quick question about settings for Parabolic SAR…what settings are you using? Mine is set at Acceleration 10, Limit 1 currently. I believe a lower Acc. value gives less signals/whipsaws, correct? I am using Barchart and would like to see what you are seeing before I make my own system. I believe you spoke about this before, but could not find it in my search. Btw, thank you in advance to all of you posting on here.
For SAR, I’m using the standard defaults of (0.02, 0.20), because I’m finding them to be good enough for my purposes. However, as you’re aware, the parameters can be changed so the entry/exit signals trigger faster or slower. Here’s a really good discussion of the indicator. Parabolic SAR [ChartSchool]
A question, if I could. What level math do you teach?
Thank you for the info! I teach junior high and high school, since we are 7th-12th grade school. This year—7th, 8th, and 10th (mostly Algebra 1, Algebra 2).
Keep in mind that BC uses different numbers:
“Wilder recommends setting the step at .02 and the maximum step at .20. Barchart reflects these parameters as the inverse, so instead of 0.02 we reflect 50 (1/50 = 0.02) and in place of 0.2 we reflect 5 (1/5 = 0.2).”
Algebra isn’t as useful for investing as probability and statistics. But I’m sure those are part of your tool kit, too. If, sometime, you want to walk away with glazed eyes, swing by a university library and pull publications of the shelf like the Journal of Finance. That stuff is so unnecessarily over-mathematized as to be nearly unreadable, even though the topics would otherwise be hugely interesting.
Thanks Lakedog, that’s helpful!
Haha I’ll pass on that publication. Yes, Stats and Prob are in my wheelhouse.