Level = Intermediate

Copyright 2001 PD,LLC

11/16/2001

The Parabolic Indicator

By Richard Philip Cadway
This Newsletter is not a public release - for members only
The Parabolic Indicator is a time/price indicator that signals when to buy long and then when to reverse your position and sell short. This indicator works well with a trending stock, but not with a choppy pattern. It generates trailing stops that help you determine whether to stay in a position or change positions.
Setting up in Realtick: The parabolic indicator can easily be setup on charts in Realtick software by right clicking the chart and clicking "setup studies". There you will be able to add the indicator and modify it's parameters.

 

Realtick is a registered trademark of Townsend Analytics, Ltd.
 
A one minute chart with the parabolic indicator:
The parabolic indicator is also called a "SAR" which stands for Stop And Reverse. In the one minute chart below, each blue dot is created in real time by the parabolic indicator and becomes a new trailing stop. When the parabolic is above the price, you should be in a short trade and when the parabolic is below the price you should be in a long trade. When using Realtick software you can read the parabolic number in the "display pop up" that is located in the lower left hand corner of the chart. At 13:41 the parabolic reversed to show that a long trade should be entered and the new trailing stop is at 44.5600. What a great entry point! You can really appreciate how this indicator works when you see it in real time. Princeton's TradeTutor Courses are the only courses that have "pause and create" technology that allows you to create on one monitor, the exact same thing you are being shown and told how to create on the other monitor.
 
Preventing just one serious mistake can easily make the TradeTutor worth more than twice it's price!
 
A 3 minute chart with the parabolic indicator:
Notice how this 3 minute chart of the same stock and date also shows a nice entry point at 13:41. Using charts with different time frames can help you determine when an entry point is valid.
 
You can learn from charts like these, but Princeton's TradeTutor Courses teach you as if someone was standing over your shoulder explaining everything to you.
 
Using indicators:
The more indicators that confirm each other the better, but using too many indicators can be counter productive.
 
We have put together a few indicators that give us direction, help us stay in the trade, and is taught in Princeton's TradeTutor Courses.
 
Special Offer:
You might be aware that we created our own training courses because we felt that other training out there was inadequate. We designed our courses to be the fastest and easiest way to learn and also the best way to retain what you've learned. Our training courses include skill development in real time, so you can really do what you've learned. Our courses also teach you what NOT to do, so you don't make the same costly mistakes others have made. Other, lower quality training programs sell for as much as $3,000 and more.
  We have a special reduced price of $2500 happening right now in our trading room here in San Diego, CA.
Special Offer #2:
We have revised our training programs to be the latest and greatest and for the first time ever are making them available to everyone on a set of CD's. This is the exact same training we offer in our trading room for $2500. Now for the best part - you can have the full set of CD-training at an introductory price of only $995.00. Here is another plus. We are offering a FREE CD that contains the first lesson from each course. How many times have you taken a course because it was hyped only to discover that it was not even close to what they said it was? Well, that can't happen with the TradeTutor because you get to experience it first hand, before you buy it.
 
 
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THE ARCHIVE

Investing vs Daytrading

7-1-2000

Determining Market Direction

7-29-2000

 Locating Market Highs And Lows

 9-5-2000

 The Margin Account

11-6-2000

 Trends

 12-8-2000

 Why Trust Analysts

 2/13/2001

 Trailing Stops

 3/25/2001

Chasing The Price

 5/24/2001

New Daytrading Rules 

 9/31/2001

The Parabolic Indicator 

11/16/2001

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