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.  Wilders Parabolic may be used as a trailing stop loss based on prices tending to stay within a parabolic curve during a strong trend.  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.