Analysis Techniques & Strategies
Name | Type | Default | Description |
AccFactorStep | Numeric | .02 | Specifies the incrementation of the acceleration factor. |
AccFactorLimit | Numeric | 0.2 | Specifies the limitation on the acceleration factor. |
ATRLength | Numeric | 3 | The number of bars to include in the calculation of the average true range. |
NumATRs | Numeric | 1.5 | Multiplier of the average true range, subtracted from the low to determine the stop value. |
Long exit based on a 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.
On the first bar of a long position, the stop price is calculated as the low of the current bar minus the average true range of ATRLength (Input) number of bars multiplied by NumATRs (Input). A stop order is generated to exit the position at this stop price. On every consecutive bar, the parabolic calculations are run and a new stop price is determined. The strategy generates a new stop order for each bar of a long position.
Order Name: ParTrLX
Related Strategy: Parabolic_m Trail SX
Related Function(s): AvgTrueRange