|PSAR INDICATOR OVERVIEW|
SHARED CHART LINK: https://www.tradingview.com/chart/mEEfeZPR/
|(A)||LTF Chart :normally the 1 minute chart from which entry signals are generated.|
|(B)||Trailing PSAR Ribbon, Long - Shaded area with blue/green dots is the trailing psar (long). This identifies the current trend on the loaded LTF chart is LONG.|
|(C)||Trailing PSAR Ribbon, Short - Shaded area with yellow/red dots is the trailing psar (short). This identifies the current trend on the loaded LTF chart is Short.|
|(D)||Long Signal - Deal entry signal, Long. Used to trigger bots to enter positions.|
|(E)||Short Signal - Deal entry signal, Short. Used to trigger bots to enter positions.|
|(1)||PSAR HTF Filter Time Frame - used to filter the 1 minute chart to keep it "with HTF trend". The HTF (Higher timeframe) ensures the LTF will trade with the HTF trend. Example: the 15M HTF is LONG, the 1 minute LTF Chart will not allow any shorts. |
Long signals will fire on the 1 minute if both the 1M and the 15M are Long!
Short signals will fire on the 1 minute if both the 1M and the 15M are Short!
|Basic Settings (PSAR V3)|
|(2)||RSI HTF Time Frame- used to filter out oversold or overbought areas on the HTF Chart, which will not allow entries on the lower timeframe (LTF) chart. This can be very helpful to avoid trading oversold & overbought areas. Utilize "Relative Strength Index" on your Tradingview chart with the length at 14 and RSI timeframe to match your indicator settings.|
|(3)||HTF RSI BUY MAX - maximum RSI value prior to filtering longs out. Example: 15M RSI is overbought (above 67), HTF RSI will not allow the 1 minute LTF chart to signal longs.|
|(4)||HTF RSI BUY MIN - minimum RSI value prior to filtering shorts out. Example: 15M RSI is oversold (below 45), HTF RSI will not allow the 1 minute LTF chart to signal shorts.|
|Advanced Settings (PSAR V4 NEW!)|
|(5)||Enable PSAR Trend Verification - enable checkbox to utilize 2nd HTF filter as an additional trend check.|
|STP SCALPER THEORY||(6)||PSAR Trend Verification Time Frame - This is a second HTF PSAR filter that is checking for higher highs (longs) or lower lows based on the Analysis period (how many candle periods back). This can be used to ensure all trades stay with the overall HTF trend (1H or even 4H), or it can be used on lower TFs just for the Higher High, Lower Low test (5m HTF PSAR, and 5m Verification for example).|
|- Trading purely on a lower timeframe (LTF) chart should be avoided at all costs. |
-LTF Charts are very receptive to LTF trend, however they ignore the overall picture (HTF) and will trade against the larger trend.
-Ignoring HTF Trends can result in risky trades, including loss and or liquidations (ie 15M chart going long right before the 56k dump meanwhile the 60M was short).
LTF RSI filtering proved useless as LTF RSI moves so quickly. HTF RSI works sometimes, but is inaccurate at avoiding tops/bottoms alone.
If you are conservative and want to utilize HTF RSI, you may decide to utilize anywhere from 55-67 for LONGS and 40-45 for SHORTS.
-Scalper bots do well in chop, with the main weakness being susceptible to bags/losses when trading against the HTF Trend.
-PSAR V4 utilizes all of PSAR V3 (HTF RSI and single HTF) however improves it by adding a second HTF for Trend Verification and DIVS.
-PSAR V4 adds a secondary HTF Filter to the mix to ensure we can trade on the 1M with two HTF Filters of user choice.
-Users can choose to trade safe with the 1M and 15M + 60M for trend, or choose to go for a more aggressive setting using 1M and 5M + 15M.
-Example: Longs on THETA will only be thrown if the 1M, 5M and 15M charts are LONG.
-Utilizing the HTF Chart of the asset selected will be better than utilizing BTC HTF alone (1hr and 4hr signals).
-Example: Theta, which continued to pump on "red days" in the bullrun meanwhile BTC had pullbacks on its way to 65k.
Decreasing HTF will Increase signal amount AND RISK. example: 1M and 5M/15M will produce more signals and risk than 1M and 15M/60M.
The above LTF, HTF, HTF RSI, and HTF Trend Verification are what PRODUCE SIGNALS on the chart.
This means that your LTF, HTF, HTF RSI, and Trend Verification have to be in agreement to throw signals.
example: 1M, 15M and 60M all long, with 15M RSI below 67 to produce LONG SIGNALS.
-With the above signal generation relying on RSI alone and not using Divergence filtering, we are susceptible to signals near tops/bottoms.
-Enabling Divergence filtering allows the use of divergence filters to filter out signals.
-Bull/Bear DIV HTF settings are the HTF Chart to check for divergences on. example: 5/6M charts.
-Bull/Bear DIV Analysis Period - this is the number of candles to analyze for divergences on the HTF chart.
-Divergence analysis period will look at the HTF chart, and the number of candles to detect if divergences are present.
Decreasing Analysis period (# of candles) will Increase signal amount AND RISK.
example: 5M and 10 candles will increase signal amount and risk than 5M and 30 candles, whereas 5M and 30 avoids the tops.
|(7)||PSAR Verify Analysis Period (# of Candles) - # of candles to verify for above 2nd HTF.|
|The above HTF, HTF RSI, and Trend Verification are what PRODUCE Signals on the chart. This means that your LTF, HTF, HTF RSI, and Trend Verification have to be in agreement to throw signals. The use of HTF Charts keep your LTF entries safe and with trend.|
|Divergence settings below REMOVE signals generated if the above are in agreement.|
|(8)||Enable Divergence Filtering? - enable checkbox to allow the use of divergence filters to filter out signals.|
|(9)||BULL DIV HTF (in minutes) - HTF chart to check for divergences on. If divergences are spotted, signals will be filtered out.|
|(10)||BULL DIV Analysis Period (# of candles) - number of candles to analyze for divergences on the HTF chart.|
|(11)||BEAR DIV HTF (in minutes) - HTF chart to check for divergences on. If divergences are spotted, signals will be filtered out.|
|(12)||BEAR DIV Analysis Period (# of candles) - number of candles to analyze for divergences on the HTF chart.|