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Miscellaneous > Parabolic

Article/Author: Omega Research Inc., 1997

Download: PARABOLIC.ELA

Category: Indicator > Miscellaneous

Description:

The Parabolic indicator, based on Welles Wilder's Parabolic Time/Price Strategy, is based on the relationship between a market's price and time. It is used to determine when to stop and reverse (SAR) a position utilizing time/price based stops. Once a Parabolic SAR is reached, the current position is exited and a new position in the opposite direction is taken.

Usage:

It is primarily used in trending markets and is based on always having a position in the market. The indicator may also be used to determine stop points and estimating when you would reverse a position and take a trade the opposite direction. The indicator derives its name from the fact that when charted, the pattern resembles a parabola or French curve.




Inputs:

EasyLanguage Code:

INPUTS: AF(.02);

VALUE1 = PARABOLIC(AF);

IF CURRENTBAR > 1 THEN
PLOT1(VALUE1[1], "PARABOLIC" )
ELSE
PLOT1(CLOSE, "PARABOLIC");


{PARABOLIC ALERT CRITERIA}
IF CLOSE CROSSES OVER PLOT1 THEN
ALERT("PARABOLIC HAS ISSUED A BULLISH ALERT")
ELSE
IF CLOSE CROSSES UNDER PLOT1 THEN
ALERT("PARABOLIC HAS ISSUED A BEARISH ALERT");