Possible ARC pattern
If it is, most parabolic arcs return to 50 to 62% of prior rise in correction mode. These are long term patterns but just keep your eyes open is all. I do not like this term as sometimes the stock continues up anyway..for a while...especially in this market~!
38% 248.45
50% 210.85
62% 174.20
79% 123.54
89% = 93.02 or even 100% is possible
Parabolic Arc patterns are generally rare but they are reliable and are generated in mega bull trends. These patterns trend gradually making higher highs and lower lows in the beginning stages but can be volatile in the exhaustion and reversal stages.
This is a daily chart, but it is easier for me to see the arc pattern on weekly. The orange is the 50 day MA and the red is the 200 MA
Just an observation
Other POSSIBLE ARCs I have noticed include SE, PTON, PLUG, DNLI, BILI, FIVN, SHOP, MGNI, OSTK, REGI, PINS, BEEM, GRVY, CRWD, BILI, ENPH, FVRR, MELI, and keeping my eye on TSLA, AMD and NVDA. OUCH! But even if these are ARCs, it does not mean there is not further upside as the ARC is a long term pattern.
If it is, most parabolic arcs return to 50 to 62% of prior rise in correction mode. These are long term patterns but just keep your eyes open is all. I do not like this term as sometimes the stock continues up anyway..for a while...especially in this market~!
38% 248.45
50% 210.85
62% 174.20
79% 123.54
89% = 93.02 or even 100% is possible
Parabolic Arc patterns are generally rare but they are reliable and are generated in mega bull trends. These patterns trend gradually making higher highs and lower lows in the beginning stages but can be volatile in the exhaustion and reversal stages.
This is a daily chart, but it is easier for me to see the arc pattern on weekly. The orange is the 50 day MA and the red is the 200 MA
Just an observation
Other POSSIBLE ARCs I have noticed include SE, PTON, PLUG, DNLI, BILI, FIVN, SHOP, MGNI, OSTK, REGI, PINS, BEEM, GRVY, CRWD, BILI, ENPH, FVRR, MELI, and keeping my eye on TSLA, AMD and NVDA. OUCH! But even if these are ARCs, it does not mean there is not further upside as the ARC is a long term pattern.
Note
Irrational buying in the public generates a strong rally to push prices vertically, followed by a steep sell off. Parabolic arc is a reversal pattern and has a very predictable outcome. Although they are predictable, they are relatively difficult to trade since the market sentiment is bullish and may be relatively tough to find reversals to trade.-Pattern is easy to spot but difficult to trade with excessive volatility.
-Good idea not stay long if you get in a possible ARC pattern (o: Check it on weekly timeframe as well.
-If the ARC falls, it is hard to get in on retracements as you do not know if it is simply a retracement.
-If this pattern reverses, it is usually a long, long time before highs are reached again.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.