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Message: Re: CRK under a buck

Sep 10, 2010 10:22AM

AL2
Sep 10, 2010 10:56AM

Sep 10, 2010 11:07AM

AL2
Sep 10, 2010 11:28AM

Al, I use parabolic sar for one of my tools. If your're not familiar here's a definition. It can provide additional areas to focus on when there is only "air" to see. Break such a support can also provide a further direction. So it is at .94 and since it is on a monthly I suspect if it is broken the shot down would be considerable....that is just my logic at work.

In the field of technical analysis, Parabolic SAR (SAR - stop and reverse) is a method devised by J. Welles Wilder, Jr, to find trends in market prices or securities. It may be used as a trailing stop loss based on prices tending to stay within a parabolic curve during a strong trend.

The concept draws on the idea that time is an enemy, and unless a security can continue to generate more profits over time, it should be liquidated. The indicator generally works well in trending markets, but provides "whipsaws" during non-trending, sideways phases; as such, Wilder recommended establishing the strength and direction of the trend first through the use of things such as the Average Directional Index, and then using the Parabolic SAR to trade that trend.

A parabola below the price is generally bullish, while a parabola above is generally bearish.



Sep 10, 2010 12:19PM

Sep 10, 2010 12:36PM
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