OK, I'm not sure that this is even a "method" yet, because I haven't used it at all - not even in a demo account. But I stumbled across this tonight and rather than spending weeks/months testing this in private, I figured I would offer this up to the forum and see if I am missing any obvious landmines.
This method utilizes nothing but a basic price chart and the Parabolic SAR - on multiple time frames. The multiple time frames are the key to the whole thing. I have been experimenting with the TEB MTF method and, sad to say, I'm not getting the same positive results. I'm sure I'm doing something wrong, but my consternation led me to look at other multiple-timeframe alternatives tonight and this is what I came up with.
Create a basic price chart with either bars or candletsticks (whatever you're most comfortable with) and place the Parabolic SAR on it. Start your analysis on the 4-hour chart. For all I know, this might work with other timeframes, but I'm doing my initial analysis with a 4-hour timeframe.
Once you're chart is set up, check it at the close of every bar to see if you have a SAR indicator in a new direction. For example, you may be seeing a long line of positive SAR indicators (meaning that the SAR spots are below the price bar), so you are looking for the first bar that has a SAR spot above the price bar. You will open your position on the closing price of the first bar that shows a reversing SAR spot.
This method utilizes nothing but a basic price chart and the Parabolic SAR - on multiple time frames. The multiple time frames are the key to the whole thing. I have been experimenting with the TEB MTF method and, sad to say, I'm not getting the same positive results. I'm sure I'm doing something wrong, but my consternation led me to look at other multiple-timeframe alternatives tonight and this is what I came up with.
Create a basic price chart with either bars or candletsticks (whatever you're most comfortable with) and place the Parabolic SAR on it. Start your analysis on the 4-hour chart. For all I know, this might work with other timeframes, but I'm doing my initial analysis with a 4-hour timeframe.
Once you're chart is set up, check it at the close of every bar to see if you have a SAR indicator in a new direction. For example, you may be seeing a long line of positive SAR indicators (meaning that the SAR spots are below the price bar), so you are looking for the first bar that has a SAR spot above the price bar. You will open your position on the closing price of the first bar that shows a reversing SAR spot.