Parabolic Indicator

Parabolic Indicator

In technical analysis, a method of using the stop and reverse method to determine when to buy or sell a security. When the security trades at a price below the stop and reverse point, technical analysts recommend selling while if it trades above that point they recommend buying. It is called a parabolic indicator because the prices between the buy and sell points look roughly like a parabola.
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lt;li>Many traders use the parabolic indicator along with the ADX to identify a trend's end.