Kardec Trader shows how to catch parabolic stock moves by waiting for the first red day after a run-up. He uses a real example where a stock climbs from $1 to $35 in five days, then enters when momentum shifts and the candle turns red.
So you can see a parabolic move is occurring. Day one it's at a dollar. Then day two it extends to $3, then extends to $8, then extends to $16, then extends to $35. What ends up happening is after I get multiple days of extension on the daily chart, first day that it goes red it triggers that. So all of a sudden the stock that was starting at $1 and went up to $35 the first day went red. It had this absolute destruction and on this destruction that is what is repeatable and that's how I make the money. So it's a lot safer.
And then hit it rather than try and anticipate it. So let's say for example, let's say this dotted line here is the previous day's close. So the stock opens up, trending up, turning up and all of a sudden you start to see a little bit of momentum subside right over here. When you see the stock finally going red you attack.
