Ask Colin

You talked about a parabolic stop that you use to set you stop profit when a stock rockets up. Can you please explain how this is executed?

The Parabolic indicator calculates a sell stop level for the next day. If you have a broker who takes sell stop orders, you can use that to place your stop order in the market. Otherwise, you need to watch the market and execute your sell order manually if the market trades at or below the Parabolic stop level.

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