Analysis Techniques & Strategies
|AfStep||Numeric||.02||Acceleration factor used to calculate the Parabolic.|
|AfLimit||Numeric||.2||Limitation on the acceleration factor.|
Long 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 long entry order when the high is less 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: ParLE
Related Strategy: Parabolic SE
Related Function(s): ParabolicSAR