Parabolic indicator


Parabolic indicator

A Technical Analysis strategy that uses a trailing stop and reverse method or "stop-and-reversal" to determine good exit and entry points. The Parabolic 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. [1] Wilders Parabolic may be used as a trailing stop loss based on prices tending to stay within a parabolic curve during a strong trend. [1] He found this when he reached for a straight edge to draw a trendline and grabbed a French curve instead. John Murphy recommends using a filter to complement the Parabolic system. [2]

14c parable, in which something is expressed in terms of something else. [2] The relation of an area to a straight line. [3]


  1. J. Welles Wilder, Jr. (June 1978). New Concepts in Technical Trading Systems. Greensboro, NC: Trend Research. ISBN 978-0894590276
  2. Technical Analysis of the Financial Markets: A Comprehensive Guide to Trading Methods and Applications ISBN-10: 0735200661
Wikinvest © 2006, 2007, 2008, 2009, 2010, 2011, 2012. Use of this site is subject to express Terms of Service, Privacy Policy, and Disclaimer. By continuing past this page, you agree to abide by these terms. Any information provided by Wikinvest, including but not limited to company data, competitors, business analysis, market share, sales revenues and other operating metrics, earnings call analysis, conference call transcripts, industry information, or price targets should not be construed as research, trading tips or recommendations, or investment advice and is provided with no warrants as to its accuracy. Stock market data, including US and International equity symbols, stock quotes, share prices, earnings ratios, and other fundamental data is provided by data partners. Stock market quotes delayed at least 15 minutes for NASDAQ, 20 mins for NYSE and AMEX. Market data by Xignite. See data providers for more details. Company names, products, services and branding cited herein may be trademarks or registered trademarks of their respective owners. The use of trademarks or service marks of another is not a representation that the other is affiliated with, sponsors, is sponsored by, endorses, or is endorsed by Wikinvest.
Powered by MediaWiki