Examples Parabolic Arc Charts The following chart shows the Parabolic Arc pattern formation in current USDCAD (weekly) from 2012 to 2016. Here are some of the key points and how it is traded. Trading Parabolic Arcs Parabolic Arc patterns are not quite easy to trade. As they are really long-term patterns (years to decades) and there is a fear associated with trading them. I consider these patterns only for shorting rather than trading upside. When prices are rising, there is a fear associated with shorting as prices can rise asymptotically for extended periods of time. We have built proprietary algorithms to detect these patterns and built various trading theories on how to trade them. Most Parabolic arc patterns do return to 50-62% of its prior rise. Here are some examples. The above chart shows CMG chart and its trade. CMG traded in Parabolic Arc from 2008 to 2017 from a low of $36 to a high of $758. Once Parabolic Arc is completed, a short trade signal is given below $630 with a price target between $311 to $397. Following chart shows current EFX Parabolic Arc.
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