Algorithm to identify parabolic price action in stocks?

[short&naked]

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

 

[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.

 

[wrbtrader]

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

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

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

wrbtrader

 

[mr_byte31]

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.

 

[ensemble]

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