The Parabolic setup Flashcards
What types of parabolic are there?
There are two:
* The Parabolic Trend Trade Setup “Day 0”: a Parabolic Trend Trade Setup is a 3 Day Setup.This is essentially a 3 Day Rectangle, the biggest and BEST PARABOLIC Trend Trades typically will come after a 3 Day Rectangular consolidation builds up.
- The Parabolic Short Squeeze Setup: *The Parabolic Short Squeeze is a Three Day Setup.This is essentially aThree Day “Dump and Pump, Day 3 shorts in the market can be a massive parabolic move”
Is this chart an example of a 3 day parabolic setup?
Can a parabolic occur after 2 trigger days?
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Can a parabolic setup happen in a session?
Yes.
Not only during 3 days but a -session- parabolic setup can build up over three sessions or more. They can be trend trades or reversal trades.
If SB had to start over with $2000 what do you think he would do?
Trade PARABOLIC setups. 2-3 a week will double your account. Know when to walk away. And ONLY TRADE THOSE. It would have saved me 15 years of banging my head against the wall and a lot of heartache! NEVER STOP getting better.
What is a Long Squeeze setup?
a parabolic setup where longs are traqpped
Longs are trapped
Is a Long Squeeze a reversal setup?
yes it is
longs are trapped
What is a Short Squeeze setup?
a parabolic setop where shorts are trapped
shorts are trapped
What are the Short Squeeze Characteristics?
- 2-3 Day Trading Setup
- 2-3 Day of Previous Days Low Triggered into the market.
- Must have a “Dump Day”
- Must have a Break In Structure to the upside.
- Looking for “trend” back into the Low of Week (LOW)
Are shorts triggered into the market with a Short Squeeze?
yes, and they are being trapped.
What are some Short Squeeze Considerations?
Should build a 1-2 Day Rectangle AT THE LOW OF THE WEEK.
Best In Combination with other signal Day Confluence (FGD/3 Days of Breakout Traders).
Meant to be a high tier setup (Range Expansion Opportunity)
Watch for the LOW BEAR CANDLE. It is important when using this setup.
Does a Short Squeeze need a Dump Day?
yes
Is the Low Bear important with the Short Squeeze?
yes
Do you enter the Short Squeeze on the 15m or the 1 m chart?
see card 13
Analysis on the m15 and entry on the m1
What are entry criteria for the SS on the M1 chart?
see card 12
Entry Criteria SS**
1. High/Low Formed
2. Trade back into High/Low 3 Push Variation
3. Break Of Structure (Unless LHF Trend Trade)
4.Chart Pattern M/W/Triple Top/Bottom/Head and shoulders (1min Chart)
5. Pattern Engulfment
6. Pin Hammer
7. Time Engulfment
Is the Short Squeeze a short or a long trade?
a long trade
Is the SS a Parabolic setup?
Yes, The best SS are parabolic.
the biggest and BEST PARABOLIC SHORT SQUEEZES typically will come after Day 3 shorts are triggered into the market at the Low of week and low of the month. A setup that has Day 3 shorts in the market can potentially be a massive parabolic move.
Playbook 90
What are the entry criteria of a parabolic SS?
1.Day 3 breakout traders shorts triggered into the market.This day should / could close as a false break reversal day.
2.Creeping trend that trades back into the peak formation LOW on thesame or next day.
3.Consolidation that should engulf and give an entry in the timing window. (London, New York)
4. An entry can be taken by a close back inside, or sideways price action inside of the 20 ema in the timing window.
5.Currencies a maximum stop loss of 20 pips (or smaller.) Gold,oil, indexes can be 25.
6.Profit Target can vary from 50 pips to 250 pips or more depending on the instrument and the setup.
Playbook 93
Are the 3 levels of rise / fall important before parabolic moves?
yes, learn to identify 3 levels of rise or fall before a parabolic move on a day 3
Do you recognize the 3 levels of rise on this chart?
Can you have a parabolic after an inside day on D3?
Do you see the stairstep and the escalator style parabolic on this chart?
Do you see the day-0 and the parabolic?
Do you see the rectangle in the rectangle and the breakout for a parabolic move?
Find the two rectangles in the consolidation and the parabolic!
Would you call this a blow-off after a consolidation?
Is this chart a 3 day parabolic setup?
Can you see two parabolics on this chart?
Is this a thursday-friday-monday parabolic setup?
Is this the m5 chart of card 29?
Can a rectangle at the LOM turn into a parabolic?
Do yo see a rectangle consolidation and 3 pushes before the parabolic goes vertical?