Let's Talk Parabolic Shorts!!

by Adam Beaty

Let's talk parabolic shorts because they are starting to pop up on this overextended market.  The parabolic short is an excellent play for reward/risk because the downward moves can be so great! 

The ideal setup:

1) Straight upward move = Parabolic = 'U'

2) Outside the bollinger bands - A must have!!!

3) Gap up in the morning

4) Weakness intraday - play when it crosses over yesterdays close - green to red

These things can drop 10-20% over 3 days!!!!!!!

Discuss in the forums! http://www.shareplanner.com/forum/swing-trading/179-parabolic-shorts.html#179