In
the parabolic trading method, the parabolic gap points are the trading signals.
As the parabolic indicator is a good rend indicator, the parabolic method
works fine on trendy markets.
The trading
signals are :
- parabolic jumps over the prices : buying (close short position and open
a long one),
- parabolic plunges under the prices : short-selling (close long position
and open a short one).