Algorithm to identify parabolic price action in stocks?

Discussion in 'Trading' started by short&naked, Nov 16, 2018.

  1. I am looking for an algorithm that identifies parabolic PA (similar to Nasdaq in 2000) on the daily time frame in stocks.
     
  2. tommcginnis

    tommcginnis

    Personally, I would use a crossover of two EMAs of price that have been filtered through a parabolic parameter. For example:
    LONG = emaP3 > emaP12

    where P# = Psub3 s.t. Psub0 > [Psub-3 * 1+r]
    and = Psub12 s.t. Psub0 > [Psub-12 * 1+r]

    r = whatever your definition of "parabolic" is ...


    Spitballing, but that should smooth out your data, while insuring you don't trigger a LONG when the thing has just dipped, nor missed a climb b/c the thing had just stalled a second.
     
  3. wrbtrader

    wrbtrader

    Have you tried the "Automated Trading" thread here at Elitetrader.com ? :sneaky:

    Designing, building, testing, and running Automated Trading Systems, also referred to as Algorithmic Trading, High-Frequency Trading, Black-Box Trading, or Algo Trading.


    wrbtrader
     
  4. A stock that went 200% in one month can easily go up more and more till it blow up your account if you short them

    You will not sleep over night.

    Check TLRY.
     
  5. ensemble

    ensemble

    Take a look at Log-Periodic Power Law (LPPL) / Sornette.