de Leon dParabolic

Attempts to detect breakouts and the termination of current trend. It was not designed to buy or sell every turn but instead to show patterns which could then be considered with other criteria (other technical indicators, fundamentals, risk compliance etc.) and to only initiate a trade when multiple green lights exist.

As always you must do your own research as to what patterns work best. The following might be a starting point to assess indicator upturns (vice versa for downturns).

Pattern 1: dP intercepts price in bull trend
Step 1: dP turns up.
Step 2: dP continues up and crosshairs turn yellow for several bars.
Step 3: dP comes within the bar's range or immediately below bar low (price intercept). The price intercept does not need to occur on the bar before it turns down. Ideally dP intercepts price not price intercepting dP.
Step 4: dP turns down. dP crosshair will now be purple. Ideally, price and dP both turn down at the same time.

WARNING: If price turns several bars before dP turns or moves along way to intercept dP, any such trade is likely to be high risk.

Pattern 1 and Pattern 2 examples:

Pattern 2: dP intercepts price in bear trend
Step 1: dP turns down.
Step 2: dP continues down and crosshairs turn yellow for several bars.
Step 3: dP comes within the bar's range or immediately above bar high (price intercept). The price intercept does not need to occur on the bar before it turns up. Ideally dP intercepts price not price intercepting dP.
Step 4: dP turns up. dP crosshair will now be purple. Ideally, price and dP both turn up at the same time.

WARNING: As Pattern 1.

Not designed for making trades in erratic market conditions.

Other indicators of this type have many shortcomings (lack of endurance in a strong trend, lack of responsiveness, easily whipsawed etc.). The de Leon dParabolic addresses many of these shortcomings. As you can see from the example above there are many price intercepts (which would whipsaw Welles Wilder's Parabolic) but dP exhibited far less whipsaw.

Unlike the way Welles Wilder's Parabolic was typically traded, the de Leon dParabolic does not require the participant to place orders daily. A market order is placed when there is a signal: a pattern match confirmed by other factors (other technical indicators, fundamentals, risk compliance etc.). The advantage of a market order is that your intentions are not known in advance by market makers.