Let us leave the large measured move formation hypothesis until we see more candles to confirm or disprove the theory (if you don't know what I'm talking about check my last couple of posts)
This is not a descending trinagle, this is not a symmetrical wedge, this is a falling wedge. Falling or rising wedges are mainly used as continuation patterns, however, in an uptrend, one would see a falling wedge and in a downtrend, one would see a rising wedge. They are in the opposite direction of their trend similar to flags and pennants. But as you can see here, this is a falling wedge in a downtrend, what does that mean? A book I read called "The technical analysis of the financial market" by Joh J. Murphy, states that when the wedge is pointing the same direction of the trend, this is a rare occurrence but signals a reversal in the trend (check it out on page 147 of the book). Let's see what happens but I'm bullish on NIO, and especially long term so even if the price drops I will be increasing my position.
This is not financial advice, just what I see in NIO's chart. Let me know what you guys think!
This is not a descending trinagle, this is not a symmetrical wedge, this is a falling wedge. Falling or rising wedges are mainly used as continuation patterns, however, in an uptrend, one would see a falling wedge and in a downtrend, one would see a rising wedge. They are in the opposite direction of their trend similar to flags and pennants. But as you can see here, this is a falling wedge in a downtrend, what does that mean? A book I read called "The technical analysis of the financial market" by Joh J. Murphy, states that when the wedge is pointing the same direction of the trend, this is a rare occurrence but signals a reversal in the trend (check it out on page 147 of the book). Let's see what happens but I'm bullish on NIO, and especially long term so even if the price drops I will be increasing my position.
This is not financial advice, just what I see in NIO's chart. Let me know what you guys think!
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.