Parabolic/Capitulating

Moves
Pips2Profit
Cameron Benson
 Parabolic Moves
1. Drags Shorts in the opposite
direction in a never ending
grind to the upside
2. “Parabola” in mathematics is a
U-shape. In regard to trading,
price appears in the same
manner, a U curving upwards
and accelerating in the
upwards direction.
Identify The Parabolic Trade BEFORE It Happens
1. Characteristics: EURCAD 3 MIN Chart
a. Peak Formation High.
b. Valley Low.
c. Consolidation in between the two formations
with ascending support.
d. Consolidation with occur under a high before
the explosion upwards.
e. More often than not, there will be some sort of
violent pullback just prior to the upwards thrust.
The Process 1.

2.
Identify a market that has present an obvious peak
formation high/Valley Low.
Mark off the consolidation at the end of the day (Last swing
high/low of the NY Session.
3. Observe to see if the market splits the range and
consolidates on top.
4. Observe to see if the market presents a “parabolic channel”.
5. Look to enter on the stop hunt back down against the
parabolic “dragging trend”.
6. Using a range expansion tool, Identify 2 full expansion of
the days consolidation and look to take profits in those
areas.
Another Example..
 Now….Flip it over

Capitulation style
patterns present
themselves in the
same way that a
parabolic move
would…just
upside down.
Now Combine it with the 3 Day Cycle/Signal Day