Parabolic Curve Patterns, Seeks of Conquistile Forex Trend
Parabolic Curve patterns are able to capture forex trading signals so you get big profits in the shortest possible time.
Already trying to trade all kinds of price patterns but still have never enjoyed a big profit? It’s time to try the Parabolic Curve pattern. This curved line pattern is relatively rare, but if you are able to find it, the chance of harvesting profits is in sight.
What Are Parabolic Curve Patterns?
The Parabolic Curve pattern is a pattern of curved lines formed by following the candlestick formation when prices rise or decrease rapidly. Visually, the pattern of the curved lines follows the correction points. The lay language, when the price forms a pattern such as a ladder, the curved line follows the base of the ladder.
Parabolic Curve patterns are commonly found when the market is in panic-buying or panic-selling conditions . That is, the price moves into one direction in a short time because driven by the dominance of the seller or buyer. Under these conditions, the opportunity to reap profits is wide open, especially when prices move through a breakout pattern of curved lines.
In essence, the Parabolic Curve pattern indicates the point where prices will start to approach the saturation point ( overbought or oversold ). If the price has touched the saturation point, the price opportunity to reverse direction will be greater.
Almost Trendline, What’s the Difference?
Overview of Parabolic Curve function will be similar to Trendline ; traders will use it to identify the direction and strength of the trend. However, there are certain situations where one of these trading tools will be more appropriate.
From the chart above, it is clear that the open position signal from the Parabolic Curve is more profitable than the Open Position (OP) signal of the Trendline.The sell signal from the Parabolic Curve comes earlier when the candlestick starts reversing from its highest end. While the OP signal from the new trendline comes later after the new trend is already running.
It can be concluded, the Parabolic Curve pattern is more effective than the trendline when prices move in one direction very quickly . In other words, the angle of the price movement can be greater than or equal to 45 degrees.
Conversely, if the price moves relatively tiered in a long enough period (slope angle below 30 degrees), Parabolic Curve cannot be used . In this case, the trendline is more profitable .
How To Get Money With A Curved Line Pattern?
Trading strategies using the Parabolic Curve pattern are quite simple. No complicated calculations or combinations of indicators are needed to improve trading signal accuracy.
The emphasis of the Parabolic Curve pattern trading signal accuracy lies in the trader’s skills in identifying market dynamics through price action . Here are the practical steps:
1. Look for currency pairs or other assets whose trend is firmer ; note the price movements in the pair whose price movements have a slope angle of more than or equal to 45 degrees to one direction and tiered like a step.
2. Use the trading tool to draw curve lines ; some trading platforms provide the built-in Parabolic Curve tool, for example tradingview . As for MT4, you can still use the help of elliptical curved line patterns instead of curves.
3. Pay attention to price movements through candlesticks ; if the candlestick body appears to penetrate the pattern of curved lines, then the price will have the potential to reverse direction from the previous trend.
4. Open Position with Money Management . After trading signals appear to open positions, use basic money management rules such as percentage of capital and Risk / Reward Ratios so that the risk of each position can be controlled.
If you follow the steps above correctly, the opportunity to profit from curved line patterns should be achieved consistently. Even though occasional trading signals miss or the direction of the trend changes, you can still secure profits with risk management in the fourth step.