Parabolic Time Price (Stop and Reverse) System trading indicator Forex.

Parabolic Time Price System - it's a trading system which included rules for entry and exit from deals by stop orders. Its author - J. Walles Junior (Trend Research, PO Box 128, McLeansville, NC 27301, 1978). The purpose of this Parabolic Time Price System - to give possible value of anti-trend price deviation during some time after trade opening. Then, than more time spend since trade opening, Parabolic Time Price System decrease possible value of anti-trend price deviation and the position close if the price cross this level.

Parabolic Time Price System's work based on set of consecutively abbreviating exponential moving averages. Every time, when the main trend is changed and price reach extremely value, moving averages changed on more fast. Exponential smoothing constant, called "speedup factor", from minimum value of 0.02 increased on 0.02 every time (bar), when price moved in supposed direction, while not reached maximum, 0.2.

This adaptive method supposed gradual approach Stop and Reverse price to current price. Stop and Reverse price in the moment of trend beginning gives wide range for price movement. But in the course of time, however, stop levels narrowed. Parabolic Time Price System follow to the trend until price break the Stop and Reverse level. Current trades closed and opposite opens in this moment.

Stop and Reverse Price's calculating starts again in every tick. In the candle when new buy trade opened, Stop and Reverse Price is equal lowest minimum, which appeared while price moved down. After that Stop and Reverse Price corrects by speedup factor in supposed direction of new trend. In next candle Stop and Reverse Price calculated with following formula:
S = P + A*(H - P),
where:
S - Stop and Reverse Price for buy position, and when this price reached by current price, we close opened buy position and open sell position
P - previous Stop and Reverse Price
A - speedup factor. It's 0.02 by default. Every time, when the price reached new maximum value since position opening, speedup factor increases on 0.02 (step). Otherwise speedup factor does not changed.
H - new price high, which appeared since current buy position opening.

In the candle when new sell trade opened, Stop and Reverse Price is equal highest maximum, which appeared while price moved up. After that Stop and Reverse Price corrects by speedup factor in supposed direction of new trend. In next candle Stop and Reverse Price calculated with following formula: S = P + A*(L - P),
where:
S - Stop and Reverse Price for sell position, and when this price reached by current price, we close opened sell position and open buy position
P - previous Stop and Reverse Price
A - speedup factor. It's 0.02 by default. Every time, when the price reached new minimum value since position opening, speedup factor increases on 0.02 (step). Otherwise speedup factor does not changed.
L - new price low, which appeared since current sell position opening.

For opened buy or sell position Stop and Reverse Price must to situate on price range abutment (in maximum or minimum, in depend on position direction) two last periods or outside of them. Stop and Reverse Price not must to situate inside of price range of two last periods. If it's buy and the Stop and Reverse Price higher than lows of two last periods, it's need to level Stop and Reverse Price to minimum of this two minimums. If it's sell and the Stop and Reverse Price lower than highs of two last periods, it's need to level Stop and Reverse Price to maximum of this two maximums.

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