psar

[montyguitar]

Doc,
can someone explain the psar indicator in easy to understand terms?  How does this have an effect on your decision to buy or sell a stock?  Thanks and this forum is great.  I think it will only take a few days for everyone to get the hang of it.  Good luck today.

[John]

I will speak very generally, as I am still learning about this myself. 
If the PAR SAR is above the PPS - that is a sell sign
If the PAR SAR is below the PPS - that is a buy sign.

This indicator needs to be used in conjunction with other indicators.

[Cecil]

I think the doc said once he gets settled down he will write all about the Technical Analysis in the TA section and how to interpret them.

[montyguitar]

Thanks for the info.  I appreciate it. 

[Dr PennyStock]

Yes, I am very busy now with some details of the forum, when I finish, I have a big to do list, I will write a post with all the most important technical indicators and other stock market related terms.

Click the link below and explore it, is very good.

http://stockcharts.com/school/doku.php?id=chart_school:glossary_a

[Tommy86]

Doc,
can someone explain the psar indicator in easy to understand terms?  How does this have an effect on your decision to buy or sell a stock?  Thanks and this forum is great.  I think it will only take a few days for everyone to get the hang of it.  Good luck today.

monty, let me add that you need to check the chart history on a stock for reaction on PAR SAR breaks (when PAR SAR changes from above to below and viceversa).
some stocks nearly "dont care" about PAR SAR but there are other which always react greatly. finding such a stock is great cause its nearly a sure moneymaker, at least for some nice 20% or even more in a day.

[Stretcher75]

Question, when the candle for the day breaks the par sar in an uptrend let's take IVAN today. The par sar was .45, the candle broke this and is up to .47, the par sar is now under the candle at .30, can some explain how come the par sar changed like this. Thanks

[Tommy86]

Question, when the candle for the day breaks the par sar in an uptrend let's take IVAN today. The par sar was .45, the candle broke this and is up to .47, the par sar is now under the candle at .30, can some explain how come the par sar changed like this. Thanks

its because when par sar is broken it triggers below/above the candle. par sar is a dynamic stop loss, so when it triggers below/above the candle it gives buy/sell signal.

[Stretcher75]

Thanks Tommy