Posted by DigiNomad on 15th of Dec 2023 at 01:19 pm
I have no idea who Bob Farrell is from this quote, but
anecdotally I can't think of a example that invalidates his "rule
#4". In my experience, parabolic moves in either direction
are always end in spectacular fashion (TLT going parabolic to the
downside recently is a great example - one among many).
Interested to hear if any of you can think of an example
where a parabolic move didn't end in an extreme way? It
doesn't count if the company went to zero and delisted
I suppose it's just math. Unless there is an example of mean
reversion not occuring (mathematically impossible...but the
reversion can happen via sideways action) even a simple mean
reversion after a parabolic move is likely to seem
extreme.
Posted by DigiNomad on 15th of Dec 2023 at 02:07 pm
Thanks! I have a stockcharts subscription but I literally only
use it so I can view / save the charts with Matt & Steves
annotations. This looks like good reading.
yep that is true in my observation. when something is truely
parabolic, you never just get a bull flag or shallow correction,
it's a pretty big correction
Posted by mastermind on 15th of Dec 2023 at 01:34 pm
I think the homebuilders have been the most parabolic. I'm out
of TOL and down to a small position in DFH. HOV doubled in a couple
of weeks, but is down 9% today. I'll be watching the STS on DHI
& PHM.
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SPX 15 min
Posted by matt on 15th of Dec 2023 at 12:57 pm
$SPX - Chart Link-
I have no idea who
Posted by DigiNomad on 15th of Dec 2023 at 01:19 pm
I have no idea who Bob Farrell is from this quote, but anecdotally I can't think of a example that invalidates his "rule #4". In my experience, parabolic moves in either direction are always end in spectacular fashion (TLT going parabolic to the downside recently is a great example - one among many).
Interested to hear if any of you can think of an example where a parabolic move didn't end in an extreme way? It doesn't count if the company went to zero and delisted
I suppose it's just math. Unless there is an example of mean reversion not occuring (mathematically impossible...but the reversion can happen via sideways action) even a simple mean reversion after a parabolic move is likely to seem extreme.
More from Bob Farrell: https://school.stockcharts.com/doku.php?id=overview:bob_farrell_10_rules
Posted by libertina on 15th of Dec 2023 at 02:04 pm
More from Bob Farrell: https://school.stockcharts.com/doku.php?id=overview:bob_farrell_10_rules
school.stockcharts.com
Bob Farrell's 10 Rules [ChartSchool]
Thanks! I have a stockcharts
Posted by DigiNomad on 15th of Dec 2023 at 02:07 pm
Thanks! I have a stockcharts subscription but I literally only use it so I can view / save the charts with Matt & Steves annotations. This looks like good reading.
yep that is true in
Posted by matt on 15th of Dec 2023 at 01:25 pm
yep that is true in my observation. when something is truely parabolic, you never just get a bull flag or shallow correction, it's a pretty big correction
I think the homebuilders have
Posted by mastermind on 15th of Dec 2023 at 01:34 pm
I think the homebuilders have been the most parabolic. I'm out of TOL and down to a small position in DFH. HOV doubled in a couple of weeks, but is down 9% today. I'll be watching the STS on DHI & PHM.