The Bear’s Playbook  /  Module 2 · Reading the Setup  /  The Parabolic Short
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The Parabolic Short6:52 / 18:10

The Parabolic Short

Justin Neel
The Bear of Wall Street
•18 min •Intermediate •Updated Sep 2026
OverviewResourcesNotesQ&A

The parabolic phase is where the crowd is most confident and most wrong. In this lesson we break down how a low-float runner goes vertical, why the last leg is fueled by shorts covering and FOMO, and how to position before the exhaustion candle instead of chasing it.

B What you’ll learn

  • Why the parabolic phase is where the crowd is most wrong
  • The three tells that a runner is losing steam
  • How to stage a starter before the exhaustion candle confirms
  • Where your stop belongs so you can be wrong cheaply

Lesson resources

The Parabolic Short — Playbook (PDF)
2.4 MB
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Scanner settings — low float runners
Preset
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Lesson chart pack
9 charts
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