0th bar

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Hi all,

I have found this forum very helpful with my last question - so here's another.

What exactly happens during the 0th bar? I'm writing a SAR EA and I want to know whether I can safely use the 0th bar to make trading criteria.

Question:

Specifically for SAR, does it flip flop back and forth over/under price for the whole time the candle is forming and finally settle later, or does it generally assume one position (over or under) for the whole time - from the start of the candle to when it has completely formed?

If the latter case is true, it would be much safer to use as an indicator.

Thanks, all!

 

...

tsandrew

0th bar is what is usually called an "opened" or "current" bar

Signals on opened bar are a subject to changes (since the price is still changing for it) and is considered a rather bad practice to take a signal of an opened bar. Almost all serious trading systems are using signals from a first closed bar instead in order to avoid what you called so nicely a "flip flop back and forth" regardless of what indicator is used

tsandrew:
Hi all,

I have found this forum very helpful with my last question - so here's another.

What exactly happens during the 0th bar? I'm writing a SAR EA and I want to know whether I can safely use the 0th bar to make trading criteria.

Question:

Specifically for SAR, does it flip flop back and forth over/under price for the whole time the candle is forming and finally settle later, or does it generally assume one position (over or under) for the whole time - from the start of the candle to when it has completely formed?

If the latter case is true, it would be much safer to use as an indicator.

Thanks, all!
 

some scalpers (the traders who are trading scalping in professional way) are using 0th bar. But in any way - they are using previous bars for confirmations and so on.

It is very difficult/risky for trader to trade on open/0th bar.

Because it is unfinished bar.

Just my opinion.

 

Thanks, mladen and newdigital - you guys are great resources.

 

Thanks guys! I've adjusted my EA accordingly. Always knew I could count on quality advice here!

 
mladen:
tsandrew

0th bar is what is usually called an "opened" or "current" bar

Signals on opened bar are a subject to changes (since the price is still changing for it) and is considered a rather bad practice to take a signal of an opened bar. Almost all serious trading systems are using signals from a first closed bar instead in order to avoid what you called so nicely a "flip flop back and forth" regardless of what indicator is used

Although you explained it very well, I still don't have any idea about the 0th bar. can you print screen it? thanks.

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