Parabolic Stocks

Discussion in 'Technical Analysis' started by EliteTraderNYC, Jan 30, 2013.

  1. What's the best way to identify a parabolic stock and its point of exhaustion? You know, how you can see the chart turning up like a cup, sort of like AAPL. A lot of the indicators I'm testing are giving me false positives.
  2. 1) The "obvious" sell-tail on the chart / candlesticks accompanied by gigantic volume. :cool:
    2) Implied volatility nearly 3 times larger than historical volatility. :eek:
    3) When analysts believe a stock will hit $1,000/share. :D
    4) High-flyers that have "cult psychology" surrounding them :(
    5) Most Admired companies that eventually become Most Despised companies. :p
    6) When a high-flyer shrugs off positive news. :confused:
  3. Technical only please no fundamentals.
  4. the first candle stick formation is one technical.. volume confirmation..

    implieds against historics are another indicator (hard to use in ninjatrader though)

    you should maybe cumulate stocks that are the talk on cnbc .. jim cramer and the other cheerleaders..

    i can't imaging trying to figure out parabolic reversals.. its the last straw of shaking the tree kind of thing.. the last dead short martingaler combined with the last person foolish enough to buy.. .