Ask Colin

If there are no clear support levels on a daily bar chart, at what point do you switch to Parabolic stops?

If the price trends up day after day with no clear pauses or corrections to indicate support levels. This is rare and usually happens only in wild bull markets. I do not have any rigid percentage rules for when I switch to this method - it is more a matter of whether I see a rate of ascent that can not reasonably continue and will fail sooner rather than later.

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