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Parabolic Curve

Parabolic Curve

A Parabolic Curve is a type of mathematical curve that takes the shape of a parabola. A parabola is a U-shaped curve that is symmetrical around a line called the axis of symmetry.
The curve is defined by the equation : -
y = ax^2 + bx + c,
where x and y are variables and a, b, and c are constants.
In mathematics and physics, parabolic curves are often used to describe the path of a projectile, such as a thrown ball or an object in freefall. They are also used to describe the shape of reflecting surfaces, such as mirrors and satellite dishes, as well as the shape of parabolic arches in architecture.
In finance, parabolic curves are often used to describe the shape of a security's price over time during a trend. The Parabolic SAR (Stop and Reverse) indicator is a technical analysis tool that uses a parabolic curve to identify potential trend reversals in the price of a security.
The indicator is plotted on a chart as a series of dots that are placed above or below the price of the security, depending on the direction of the trend. Traders can use the Parabolic SAR indicator to identify potential entry and exit points in the market.
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