Parabolic Short Scanner
Find stocks that went straight up and are about to snap back. The parabolic short scanner identifies overextended names trading far above their moving averages after an unsustainable run — short setups, not buys. Built from Kristjan Kullamägi’s published method for identifying parabolic exhaustion.
Every momentum trader has seen it: a stock runs 100% in two weeks, social media is on fire, everyone is chasing — and then it gives back half the move in two days. The parabolic short scanner exists to find these names before the snapback happens, not after.
A parabolic move is defined by acceleration. A healthy uptrend advances at a steady pace, pulling back to moving averages along the way. A parabolic move abandons that rhythm. The stock starts going up faster and faster, each day’s range getting wider, each close further from the 10- and 20-day averages. The chart goes nearly vertical. At some point the last buyer has bought, and the reversal is swift because there is no support underneath — the stock ran through all of it on the way up.
Kristjan Kullamägi has described this pattern extensively in his public streams: when a stock gets too far stretched above its moving averages after a multi-day parabolic run, the odds of a sharp pullback increase dramatically. The key is measuring the extension objectively, not guessing. This scanner does exactly that — it quantifies how overextended each stock is relative to its own normal volatility and flags the most extreme cases.
This is a short setup. Shorting stocks carries risks that are fundamentally different from buying — losses on a short position are theoretically unlimited, and a stock can stay irrational longer than you can stay solvent. The scanner finds the candidates; risk management is yours.
How the parabolic short scanner works
After each session’s close, the scanner evaluates every stock in the universe for signs of parabolic overextension. It measures several factors:
- Distance from moving averages — How far is the stock above its 10-day, 20-day, and 50-day moving averages? A stock 60% above its 20-day EMA is far more stretched than one 10% above it.
- Rate of advance — How steep is the recent move? A stock that gained 80% in 5 days is more parabolic than one that gained 80% in 30 days.
- Consecutive up days — Parabolic moves often feature strings of 5, 7, or more consecutive up days. Normal trends have pullback days interspersed.
- Range expansion — Are the daily candles getting wider? Increasing range on the later days of a run is a sign of climactic buying and approaching exhaustion.
- Volume pattern — Is volume spiking on the final push? Climactic volume after a multi-day run often marks the top, not the beginning.
The scan ranks stocks by how extreme their overextension is. The names at the top of the list are the most stretched and most likely to snap back. But “most likely” is not “certain” — some stocks stay parabolic longer than anyone expects.
What you see in each result
- Extension percentage — How far above the 20-day EMA the stock is trading, as a percentage. This is the primary sort metric.
- Days extended — How many consecutive sessions the stock has closed above its 10-day EMA without a meaningful pullback.
- Average daily range (ADR) — The stock’s normal daily move, so you can size positions appropriately.
- Daily chart — Candles with moving averages showing the full parabolic arc and where price sits relative to the averages.
- Fundamentals — Earnings, revenue, and catalyst data. A parabolic move backed by a real earnings surprise is harder to short than one built on hype alone. The fundamentals help you distinguish.
- Short interest — Current short float percentage. High short interest increases squeeze risk.
Questions about the parabolic short scanner
What does parabolic mean in stock trading?
A stock goes parabolic when its price accelerates sharply upward in a short period, creating a near-vertical chart pattern. The move becomes unsustainable because the stock is too far extended from its moving averages, and buyers at these levels are chasing rather than accumulating. Parabolic moves almost always end with a sharp reversal.
Is this scanner for shorting stocks?
Yes, the parabolic short scanner identifies short setups, not buying opportunities. Shorting carries unique risks — unlimited theoretical loss and the possibility of a short squeeze — so this scan is best suited for experienced traders who understand short selling mechanics.
How does the scanner measure overextension?
It measures how far a stock has moved above its key moving averages, the steepness of the recent advance, the number of consecutive up days, and the expansion of the average daily range. The most extreme cases rank highest.
Other scanners
SwingTradeScanner includes seven scanners, each built from a published method:
- Momentum Breakouts — Tight base breakouts scored 0–100
- Episodic Pivots — Overnight gaps on real news, live from 04:00 ET
- Parabolic Short — You are here
- Parabolic Long — Capitulation bounces after a crash
- Minervini SEPA — Trend template tightening into a breakout
- O’Neil CANSLIM — Earnings growth meets chart strength
- Sector Rotation — Strongest stocks in the hottest sectors
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