The basic ideas behind Parabolic Arc patterns: Pattern is easy to spot but difficult to trade with excessive volatility. Most Patterns retrace to 62–78% of its rise. 50% retracement is first target. Do not overstay in your trades Stay away from “Parabolic Arc” patterns buying (after retracements) as you truly never know where/when it will start reversing. Do not expect the price to return to Parabolic Arc highs for a very long time.