Parabolic/Capitulating
Moves
Pips2Profit
Cameron Benson
Parabolic Moves
1.
2.
Drags Shorts in the opposite
direction in a never ending
grind to the upside
“Parabola” in mathematics is a
U-shape. In regard to trading,
price appears in the same
manner, a U curving upwards
and accelerating in the
upwards direction.
Identify The Parabolic Trade BEFORE It Happens
1.
Characteristics:
a.
b.
c.
d.
e.
Peak Formation High.
Valley Low.
Consolidation in between the two formations
with ascending support.
Consolidation with occur under a high before
the explosion upwards.
More often than not, there will be some sort of
violent pullback just prior to the upwards thrust.
EURCAD 3 MIN Chart
The Process
1.
2.
3.
4.
5.
6.
Identify a market that has present an obvious peak
formation high/Valley Low.
Mark off the consolidation at the end of the day (Last
swing high/low of the NY Session.
Observe to see if the market splits the range and
consolidates on top.
Observe to see if the market presents a “parabolic
channel”.
Look to enter on the stop hunt back down against the
parabolic “dragging trend”.
Using a range expansion tool, Identify 2 full
expansion of the days consolidation and look to take
profits in those areas.
Another Example..
Now….Flip it over
Capitulation style
patterns present
themselves in the
same way that a
parabolic move
would…just
upside down.
Now Combine it with the 3 Day Cycle/Signal Day