Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

How to Build a Simple Bubble Finder?

34 sec read

Was thinking yesterday about “is there is a more simplistic way, where we can list out the stocks with exponential rise in price aka bubbles.” Suddenly this simple thought process strikes my mind. It is a good old classical analysis idea using RSI(2) but on the yearly timeframe with RSI(2)>99.

The idea is relative strength index of 2 period over yearly timeframe indicates a possible exponential price formation in otherwords we can call it as extremely overbought and people are really crazy about such stocks and market participants are driving it madly high and higher year on year.

https://gist.github.com/f733a0680962daa69ad86e0c7e0be610

Here is the simple exploration code applied over NSE Cash scrips and found out over 136 scrips with RSI>99. By the way RSI(2) – Yearly for Nifty index is at 92.95.

Here is the list of stocks from the exploration scan. Make sure you are not holding it one from the pack 🙂

TickerDate/TimeCloseRSI2-Yearly
AARTIIND42828789.599.84
AEGISCHEM42828196.5599.59
ALICON42828444.899.16
AMARAJABAT42828908.3599.93
AMBIKCO428281325.199.79
APLAPOLLO428281202.5599.6
ASAHISONG42828277.3599.38
ASIANPAINT428281089.8599.82
ASIANTILES42828368.299.36
ATUL428282367.0599.87
BAJAJFINSV428284098.2599.45
BALAMINES42828377.899.71
BALKRISIND42828141099.96
BANARBEADS4282878.9100
BEARDSELL42828440.1599.59
BERGEPAINT42828248.399.87
BHARATRAS428283017.899.85
BODALCHEM42828165.399.73
BROOKS42828138.9599.63
CANFINHOME428282324.399.95
CAPF42828769.1100
CARBORUNIV42828291.0599.73
CCL42828338.899.74
CEATLTD428281335.399.62
CERA428282920.799.99
CEREBRAINT4282839.75100
CHEMFALKAL42828292.6599.5
CNX AUTO428289921.199.61
CNX Energy4282811819.499.44
CNX FMCG4282823639.6100
CNX MNC4282811022.55100
DABUR42828280.399.83
DALMIABHA428281970.65100
DALMIASUG42828178.5599.35
DEEPIND42828327.899.34
DHFL42828372.8100
DWARKESH42828459.599.25
EICHERMOT4282825543.65100
EMMBI42828156.599.67
ESCORTS42828537.599.06
FILATEX42828121.699.21
FINPIPE42828590.299.61
FLFL42828272.499.82
GABRIEL42828125.299.03
GANDHITUBE42828335.599
GARWALLROP42828723.0599.52
GHCL42828268.999.18
GODREJCP428281695.999.99
GOLDINFRA4282879.0599.33
GREENPLY42828283.199.66
GRUH42828399.399.96
GUJALKALI42828409.0599.66
HARITASEAT42828697.3599.16
HAVELLS42828468.899.91
HDFCBANK428281433.299.53
HERITGFOOD428281095.999.16
HIMATSEIDE42828342.599.51
HINDPETRO42828518.699.03
HITACHIHOM428281820.6599.68
IGARASHI42828806.1599.24
IGPL42828379.699.45
INDTERRAIN42828168.699.43
INDUSINDBK428281403.4599.83
JBMA42828280.0599.69
JSWHL428281524.8100
KAKATCEM42828330.9599.22
KANSAINER4282837499.88
KEI42828189.6599.15
KOTAKBANK42828875.9599.62
KRBL42828420.2599.8
LANCOIN42828389.2599.53
LUMAXIND428281374.899.49
M1004282817.9999.74
MARICO42828296.5599.93
MARUTI42828607299.41
MINDAIND42828440.3599.65
MORARJEE4282857.25100
MOTILALOFS4282875499.02
MRF4282860993.5599.93
N10042828399.52100
NATCOPHARM42828864.899.92
NAVINFLUOR428283136.8599.77
NEULANDLAB428281498.299.85
NILKAMAL428282001.4599.14
NOCIL4282895.8599.07
OCL42828937.3599.73
PAGEIND4282814579.2599.99
PANAMAPET42828167.699.15
PAPERPROD42828245.799.66
PEL428281936.05100
PIDILITIND42828702.9599.88
PVR428281437.499.8
RAMCOCEM42828674.65100
RBL428281028.6599.57
RUCHIRA42828168.4599.75
SHILPI42828222.1100
SHIVTEX42828365.499.56
SHREECEM4282817169.6599.61
SHREYANIND42828138.3599.42
SIYSIL42828169899.41
SOMANYCERA42828693.8599.86
SONASTEER4282882.199.41
SRF428281662.0599.26
STARPAPER42828180.999.15
STEL4282870.9599.48
STERTOOLS42828224.199.84
SUBROS4282821899.41
SUMMITSEC42828582.2599.41
SUNCLAYLTD428283671.45100
SUPPETRO42828313.899.84
SUPRAJIT42828240.0599.91
SUPREMEIND428281102.199.97
SWARAJENG428281482.699.51
TAINWALCHM428285799.26
TIIL4282845199.56
TIRUMALCHM42828893.199.26
TOKYOPLAST42828120.899.57
TRENT42828271.999.43
TRIDENT4282885.499.54
TTKPRESTIG428285872.199.99
TVSMOTOR42828436.199.53
TVSSRICHAK428283496.2599.91
UNIPHOS42828735.4599.64
UNIPLY42828314.8599.75
UPERGANGES42816377.799.16
V2RETAIL42828191.399.9
VAKRANSOFT42828329.1599.98
VARDHACRLC428285499.36
VESUVIUS428281244.9599.81
VHL428282908.1599.8
VINATIORGA42828745.699.94
VSSL42828159.4599.55
VSTTILLERS428281791.699.83
VTL428281358.8599.54
WHEELS428281329.799.31
ZEEL42828528.5599.45
Rajandran R Telecom Engineer turned Full-time Derivative Trader. Mostly Trading Nifty, Banknifty, USDINR and High Liquid Stock Derivatives. Trading the Markets Since 2006 onwards. Using Market Profile and Orderflow for more than a decade. Designed and published 100+ open source trading systems on various trading tools. Strongly believe that market understanding and robust trading frameworks are the key to the trading success. Writing about Markets, Trading System Design, Market Sentiment, Trading Softwares & Trading Nuances since 2007 onwards. Author of Marketcalls.in and Co-Creator of Algomojo (Algorithmic Trading Platform for DIY Traders)

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