Parabolic Curve Theories
August 26, 2011 at 7:59 am 4 comments
Theory of parabolics – Spotting the top
Parameters: RSI of daily in parabolic state exceeds that of RSI of weekly in parabolic state. RSI Daily > RSI Weekly
Theory: This suggest the stock in study is toppish.
Case 1: MIC
Price: 5.90 ; RSI daily = 81.60; RSI Weekly = 75.44
Theory suggest toppish for now.
Case 2: Gold
Case 3: BHI
Entry filed under: Parabolic and Emotional Spike Theories, Phisix's Closet (PSEi). Tags: bhi, gold chart, gold price top, gold's parabolic curve, mic, parabolic curve theory, pse bhi, pse mic.
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Spyfrat's Call 
1.
andrei | August 29, 2011 at 9:18 am
super like lc/lcb
2.
Beginner na newbie | August 30, 2011 at 2:44 pm
Hello,
Is MIC a buy po?
When you say parabolic, does that mean good or bad.
Thank you po.:)
3.
spyfrat | August 31, 2011 at 12:59 am
Hi Sir, by parabolic, it means it defies gravity. A stock in parabolic state lives in a high RSI (relative strength index) environment. This suggest a RSI of 70 and above is no longer an indicator for overbought conditions.
Moreso, there’s a theory i am looking into, that is if RSI daily exceeds of that RSI weekly in parabolic state, it is considered toppish or current spike is unsustainable. Last friday, it was a case of RSI daily exceeding RSI weekly, thus MIC corrected down to 5.40 i think before closing at 5.53.
As of friday’s close of 5.53, RSI daily of 79.92 still exceeds RSI weekly at 73.75, this still suggest that MIC’s rally is still unsustainable.
Note pls that this is just a theory about parabolics. Goodluck Sir and God bless.
4.
Beninner na newbie | August 31, 2011 at 5:00 am
thank you for sharing your thoughts.:)