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
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01
Measure distance from moving averages
After each session’s close, the scanner checks how far every stock in the universe is trading 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.
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02
Score the 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. The scanner also counts consecutive up days — strings of 5, 7, or more with no pullback are a hallmark of exhaustion.
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03
Check range and volume expansion
Are the daily candles getting wider, and is volume spiking on the final push? Increasing range and climactic volume on the later days of a run often mark the top, not the beginning.
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04
Rank by overextension
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 — though 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.
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.
New to the setup? Read the parabolic short setup guide: entries, stops and the risks of shorting a vertical move.
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Start your free trialThis scan is one of Kristjan Kullamägi’s three setups. See all three in the Qullamaggie scanner overview.