Parabolic Curve Pattern, CAurve of the Trend Conqueror SectionWhat Is the Pattern of a Parabolic Curve ?
The Parabolic Curve pattern is a curved line pattern that is formed by following a candlestick formation when prices rise or decline rapidly. Visually, the curved line pattern follows the correction points. The lay language, when the price forms a pattern like a staircase, the curved line follows the base on the steps.
Parabolic Curve patterns are generally found when the market is in panic-buying or panic-selling conditions . That is, the price moves to one direction in a short time because it is driven by the dominance of the seller or buyer. In these conditions, the opportunity to gain profits is wide open, especially when the price moves to break through the curved line pattern.
In essence, the pattern of Parabolic Curve indicates the point where prices will begin to approach saturation (overbought or oversold). If the price has touched its saturation point, the price opportunity to reverse direction will be even greate
Price climb very fast in a very short period. Chart gradient is more than 45 degree when you zoom out the chart by expanding the time frame.
When the chart breakdown, the stock price plunges close to 50% Fibonacci Retracement Level within one or two months
Did you Get Burnt?
The Parabolic Curve Pattern Strategy usually does occur during sharp economy motions. Industry speculation which becoming ahead of itself leads These kinds of movements. Traders usually find themselves front-running an occasion. So one of many public ways to recognize a more parabolic curve blueprint is that the period beforehand of the big event.
How Can You Make Money With a Curved Line Pattern?
Trading strategies using the Parabolic Curve pattern are quite simple. No complicated calculations or combinations of indicators are needed to improve the accuracy of trading signals.
The emphasis of the accuracy of trading signals on the Parabolic Curve pattern lies in the trader's skills in identifying market dynamics through price action charts. Following are the practical steps:
Look for currency pairs or other assets whose trend movements are strong; note the price movements in the pair whose price movements have a slope of more than or equal to 45 degrees to one direction and tiered like a ladder.
Use the trading tool to draw curve lines; some trading platforms provide a built-in Parabolic Curve tool, for example tradingview. As for MT4, you can still use the help of an ellipse curved line pattern instead of the curve.
Pay attention to price movements through candlesticks; if the body of the candlestick appears to break the curved line pattern, the price will have the potential to reverse direction from the previous trend.
Open Position with Money Management. After the trading signal appears to open a position, use the basic money management rules such as the percentage of capital and the Risk / Reward Ratio so that the risk of each position can be controlled.
You can make fast money by riding on Parabolic Curve but you must know when to get out.
The above three charts start crossing down the 20D MA, that is the 1st signal to get out. When crossing 50D MA, that is the 2nd signal to take profit or cut loss.
When trading with Parabolic Curve, must keep an very close eye on the chart pattern every day.
