The Parabolic Swing & Grind

Yesterday, the 5m chart showed a powerful set of parabolic swing reversals. Trend lines broke easily and needed to be redrawn constantly. This is the nature of parabolic moves. Parabolic moves might imply the bulls and bears have their stops placed close above/below the trendline(s). Once the parabolic move ends, the reversal is just as violent, as the volume dries up in the direction the parabola moved.

There were a few instances of sharp downturn and slowed descent, where the parabola down was slowed potentially by more 'conservative' bulls. But once the cup of support broke, the price easily cut new lows for the day.

Beware, parabolic moves have violent reversals. If yesterday was a fractal of future market events, exercise caution, a big move is brewing. And OpEx week (next week) should be full of thrills and chills as it grinds more nerves to a pulp.