Analysis Techniques & Strategies
|AfStep||Numeric||.02||Acceleration factor used to calculate the Parabolic.|
|AfLimit||Numeric||.2||Limitation on the acceleration factor.|
Short entry based on the value of the Parabolic calculation.
Welles Wilder introduced the Parabolic Indicator, and its curve resembles a parabolic curve. The parabolic value is calculated to cross over and under the price, moving closer to the price on every bar. When the parabolic value crosses under current prices it is bullish, and when it crosses above the current prices, it is bearish.
This strategy generates a sell stop order when the low is greater than or equal to the parabolic value. The stop is placed at the value of the parabolic using the acceleration factor of .02.
Order Name: ParSE
Related Strategy: Parabolic LE
Related Function(s): ParabolicSAR