Trend reversal. Identify when a stock goes parabolic.

Make it simple. There are different ways to spot a trend reversal as explained in the following videos.

Price Headley’s book “Big Trends in trading” has a chapter named “Acceleration Bands and Moving Average Envelopes – Spotting the point when a stock can go parabolic”. The chapter, chapter 7 starts wit this sentence. “The principle of Acceleration is one of the most critical lessons that active traders must learn.”

This is about the price breaking out of the band. John Bollinger’s book “Bollinger on Bollinger Bands” has two similar chapters, 15 about the Squeeze and reverse Squeeze and chapter 16 about volatility brekout.

The precision profit float indicator is another way to identify trend reversals when a float turnover happens.

Are you doing this mistake?

Reccomended reading.