Parabolic Arc: What Goes Up... by Suri Duddella in Modern Trader Magazine (Nov. 2016)
Parabolic Arc chart patterns form when a steep rise in prices caused by irrational buying and intense speculation. Parabolic Arc patterns are 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. Irrational buying in the public generates a strong rally to push prices vertically, followed by a steep sell-off. Examples of this market types are the NASDAQ bullish markets during 1990-2000 (retraced 80%) and Gold prices from 2000-2011 (retraced 62%).