Parabolic tops can be very instrumental in trend analysis, especially in identifying potential reversals during strong upward trends. They occur when prices rise sharply in a short period, often forming a steep curve, signaling that the market may be overextended. This pattern often indicates exhaustion, where buyers start taking profits, leading to a reversal or significant pullback. Combining parabolic tops with other tools like RSI (to spot overbought conditions) or support levels can improve the accuracy
Why don’t you use it to buy calls? Are these stocks optionable? How many days in advance is your signal generated?
Both calls and puts would be possible. That's why I asked about when exactly is the signal generated. But most of these parabolics happen on non-optionable stocks or low floats, in which case his system would not be of interest to most.
i forgot i made this post. well i figured it out from trading on chain meme coins because they go parabolic all day long i researched for months and eventually found out a ton of techniques. and it works 100% of the time. but then i found out that the same techniques work on stocks over years. memecoins are just a lower timeframe of the same exact thing. im actually just kinda confused and shocked that its not well known but i'm guessing its because people havent looked into it and probably as others have said here, parabolic moves in traditional market happen over a long period of time and people assume they can't be figured out not only can it be figured out but i've found it to be the most predictable thing in the markets. anyway the reason i cant make much money on it is because i cant short memecoins. and i dont have the capital for shorting parabolic highs in stock markets and also they dont happen often enough. basically it's just given me a tool to sell btw, you can learn a lot from studying memecoin price action. its a massive data source. also, this may sound crazy but i tested the method on S&P from 1980-2000, and it follows the same pattern too. so try to wrap your head around that. the techniques i learned from memecoins applies to the S&P over decades. what it means is that its essentially abstracted from reality. A parabolic move is basically programmed and i've thought about it for awhile reasons why. one of them is predictable profit taking from early buyers. another is that in log scale it follows a curve, but parabolic is a diagonal line, so the parabolic part is what extends beyond the curve and appears parabolic in linear scale. Also, i have a theory that the parabolic shape both accelerates speculative buying but also gives the impression that its fragile. It's essentially geometric which means there are angles you can use that it will follow in linear scale. for example, in tradingview, draw a diagonal channel in log scale that goes from 1$ -100$ and then draw a zig zag along it. when you go to linear scale, it will create the parabolic shape. This is what I mean by its basically programmed. The people who bought in the early part of the cycle sell the top which gets there to begin with because of it over-extending the log curve and creating that shape. This is also why i think coincidentally fib extensions work, is because its measuring how the waves are relative to eachother and I suspect it has a connection to multiples in profit-taking which is what is really going on. So if youre extending wave 1, you're extending the profit taking percentages. I think that's whats going on under the hood. for example, it's basically a 10x from the bottom. but good luck finding what the bottom number is. but there is a way. One hint is notice where 90% retracement is on parabolic moves, from bottom to top. You'll notice some coincidences if you start looking into this. The reason people haven't noticed it is because they haven't been seeing it dozens of times a day for months which you can with memecoins. I basically have discovered several different techniques and when you combine them all you get the top with close accuracy before it even goes parabolic because I'm projecting from the beginning part of the cycle. What I mean is I've looked at over a hundred charts and applied my methods on all of them, including stocks and it works on every single one. I mean it's universal and ubiquitous. The only thing is you don't if its a top you just know it'll dump there. It can fractal and continue after dumping. I've looked at Apple and Nvidia and it's the same proportional pattern fractaling over and over. And the fact the same pattern is in low cap memecoins (literally could be as low as like 200k MC) means its something fundamental with math and human nature
I noticed Nvidia top using these methods. just goes to show narratives are justification and not the real reason for any of this I think there's a good chance NVDA could fractal though. the financial system is set to crash around 2030. So I think there's probably going to be some last rally. I don't think this is the ONE just yet. It seems like derisking and manipulation before the final push. S&P as lower band 7500, upper 10,000. i'm thinking pushed up by fantasy of AI, basically version of dotcom bubble. Then I'm guessing there will be several years of recession while focus shifts to energy, infrastructure, and real innovation. AI will actually be integrated in real ways. Gold and BTC will likely grow massively during this 10 year period and won't hit their cycle high until the system renewal around 2040. Gold around 8-10k, btc around 1-2m. So we are in a weird place, because it looks like the end but I think it's just a warning of the end. One last absurd push and everyone will forget that Gold went up this year.