Use to find companies where this pattern is active.
The stock is in a parabolic move with increasing intensity. Parabolic SAR shows acceleration, RSI is overbought, and ATR is expanding. The move is becoming more intense, not less.
State
Parabolic extension
Emergence
Parabolic SAR indicates trend acceleration while overbought conditions and ATR expansion are present. When the parabolic indicator shows acceleration, RSI is overbought, and ATR is expanding, the stock is in an extended move with increasing intensity.
Limits
This story identifies extension characteristics, not reversal prediction. It does not claim the move will end, predict pullback timing, or guarantee overextension will correct. Parabolic moves can extend far beyond what seems reasonable.
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Explanation
Each signal represents an independent observation about move intensity: Parabolic SAR measures trend acceleration using Wilder's parabolic stop-and-reverse system. Active readings indicate the trend is accelerating. RSI Overbought (1Y) indicates sustained buying pressure over the past year. Overbought readings indicate the stock has risen significantly. ATR Expansion measures whether price volatility is increasing. Expanding ATR during a parabolic move indicates increasing intensity. When all three align, they describe a stock in an increasingly intense move—a state observation about current intensity.
Interpretation
This story identifies extension characteristics, not timing signal. It does not predict when the move ends, guarantee correction, or recommend selling. Parabolic moves can extend far beyond apparent extremes.