A trader explains why calling a price move parabolic when it isn't costs money. Real parabolic rallies show escalating volume on bigger candles near the high, building to an obvious peak before collapse. Most traders mislabel weaker moves and chase them anyway.
The same way I like multiple green days. Yeah, you almost want some kind of build. You want a perfect little chart that just gets more insane as it goes up to where it gets so insane trade up in terms of price action. It has to eventually stop. And so from an intraday perspective, you know, maybe it starts going out spikes, then it goes down. Then all of a sudden you just keep it see going and then it just keeps catching wind and catching wind and all of a sudden, oh my gosh, we're just going for it. The biggest mistake people will call something a parabolic and it didn't do this. It just went like this. You want something that builds up so much that again back to the volume. It just starts trading. It goes up, it goes down. Right. But then all of a sudden and it starts to pick up, pick up, pick up, pick up. And all of a sudden you the biggest volume candles at near the highs got you right?
