This indicator is a small tribute to youtuber TradePro
The operation is simple. It is the same indicator with its default configuration, but in background format. It is a new way to visualize the same information, more understandably. It is in itself a complete trading system, it can be used in conjunction with the traditional to locate the stop loss.
In stock and securities market , ( ) is a method devised by J. Welles Wilder, Jr., to find potential reversals in the market price direction of traded goods such as securities or currency exchanges such as forex. It is a trend-following (lagging) indicator and may be used to set a trailing stop loss or determine entry or exit points based on prices tending to stay within a parabolic curve during a strong trend.
Similar to option theory's concept of time decay, the concept draws on the idea that "time is the enemy". Thus, unless a security can continue to generate more profits over time, it should be liquidated. The indicator generally works only in trending markets, and creates "whipsaws" during ranging or, sideways phases. Therefore, Wilder recommends first establishing the direction or change in direction of the trend through the use of , and then using a different indicator such as the to determine the strength of the trend.
A parabola below the price is generally , while a parabola above is generally . A parabola below the price may be used as support, whereas a parabola above the price may represent resistance.
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.