Tips and Tricks: Creating Parabolic Trendlines

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Creating Parabolic Trendlines

Printed From: BullCharts Forum
Category: BullCharts
Forum Name: Tips and Tricks
Forum Discription: Tips on how to use BullCharts more effectively.
URL: http://www.bullcharts.com.au/forum/forum_posts.asp?TID=167
Printed Date: 19 Apr 2025 at 7:01pm
Software Version: Web Wiz Forums 9.69 - http://www.webwizforums.com

Topic: Creating Parabolic Trendlines

Posted By: Peter
Subject: Creating Parabolic Trendlines
Date Posted: 08 Mar 2005 at 3:10pm

In physics, an object that is accelerating will often appear as a parabola. Parabolic formations can also sometimes be observed in stock market trends indicating that the rate of change is increasing, ie accelerating.

BullCharts allows you to construct parabolic trendlines. Figure 1 shows a parabola fitting the lows on a KZL daily chart.

In the same way that it takes two points to described a line, it takes three points to describe a parabola. To draw a parabola, follow these steps:

Select the parabola tool, located with the shape drawing tools.
Click three times on the chart at three separate points. It is important that none of the points are on the same date. Tip: Use http://www.bullcharts.com.au/forum/forum_posts.asp?TID=105 - snap to price to exactly lock onto price points.
A cross will mark the first two clicks. Once the third click is made the parabola will appear that passes through the three selected points.

Once drawn, the parabola's three handles can be moved around much like the other drawing tools. Options are also available in the parabola properties to extend the parabola to infinity in either direction.

Replies:

Posted By: SimonSavva
Date Posted: 28 May 2005 at 5:00pm

I've never seen this before, might be quite useful as a stop loss tool. Thankyou!

Posted By: damo
Date Posted: 04 Dec 2005 at 10:14pm

Can we have an option where we can increase/decrease the speed of the parabola? This is seen in FoxCharts and Market Analyst.

damo

Posted By: Brendon
Date Posted: 05 Dec 2005 at 6:24am

Can you email to mailto:brendonl@weblink.com.au - brendonl@weblink.com.au a screen shot of the options available.

Thanks

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Posted By: Owen
Date Posted: 11 Jan 2006 at 9:36pm

Daryl Guppy's charting package also has a parabolic tool, but it seems to work differently.

The top chart is BC. The bottom one is from GTE Tool Box. I showed the differences on the charts. My main point is that the timing of exit is different, depending on what program you use. What do others think?

Posted By: Brendon
Date Posted: 12 Jan 2006 at 11:22am

Guppies' parabola is actually more like our Quarter Ellipse.

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Posted By: Owen
Date Posted: 12 Jan 2006 at 10:02pm

Brendon you are right! I love Bullcharts even more now.

Posted By: damo
Date Posted: 05 May 2006 at 1:38am

Originally posted by Brendon

Can you email to mailto:brendonl@weblink.com.au - brendonl@weblink.com.au a screen shot of the options available.

Thanks

I would have mailed this to you already, but Market Analyst keeps crashing...