Before I get into what happened I must underline the concept of patience and the need to wait for a confirmation. Emotional traders with FOMO (fear of missing out) are the ones that lose in this game.
NIO seems to have broken the top trendline in the triangle. This is amazing news, however, since it is a green day in the tech market, we shouldn't get too excited. At the breakthrough of a triangle one would wait to see one of two things:
A) explosive volume (we have not seen yet, but we did see an increase).
B) retest of the trendline it broke (NIO seems to have done that slightly on the one-hour chart but since we haven't seen the expected volume for a confirmation we cannot execute based on confirmation circumstances).
Therefore, there might be a chance it will retest the trendline on the daily chart. And if it does that tomorrow don't be upset with the red day, it would be a confirmation which then would lower your risk of going long and maximize your profit knowing it bottomed out.
So today is the day, but tomorrow is the day we know for sure. What to expect tomorrow:
- If we see volume rapidly increasing then that is a confirmation by its self
- Since it is overbought on the hourly RSI we could see a red day that might result in a bounce off the trendline, confirming that NIO is done with its pullback, the sideways trend it was in the past two months and on its way up again.
This is not financial advice, this is just what I am seeing from NIO's chart.
And to my followers and anyone who has been keeping up with my content, this breakthrough happened perfectly on the "measured move" hypothesis I have posted about which is amazing. I am waiting for a few more candles to see NIO react to the C - D estimated leg/push before I update you so that every post has actual value, follow me to stay tuned with that idea.
NIO seems to have broken the top trendline in the triangle. This is amazing news, however, since it is a green day in the tech market, we shouldn't get too excited. At the breakthrough of a triangle one would wait to see one of two things:
A) explosive volume (we have not seen yet, but we did see an increase).
B) retest of the trendline it broke (NIO seems to have done that slightly on the one-hour chart but since we haven't seen the expected volume for a confirmation we cannot execute based on confirmation circumstances).
Therefore, there might be a chance it will retest the trendline on the daily chart. And if it does that tomorrow don't be upset with the red day, it would be a confirmation which then would lower your risk of going long and maximize your profit knowing it bottomed out.
So today is the day, but tomorrow is the day we know for sure. What to expect tomorrow:
- If we see volume rapidly increasing then that is a confirmation by its self
- Since it is overbought on the hourly RSI we could see a red day that might result in a bounce off the trendline, confirming that NIO is done with its pullback, the sideways trend it was in the past two months and on its way up again.
This is not financial advice, this is just what I am seeing from NIO's chart.
And to my followers and anyone who has been keeping up with my content, this breakthrough happened perfectly on the "measured move" hypothesis I have posted about which is amazing. I am waiting for a few more candles to see NIO react to the C - D estimated leg/push before I update you so that every post has actual value, follow me to stay tuned with that idea.
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.
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.