NVDA, Continuation of correction or making new ATH ?
Updated
Is NVDA on the way to make a new ATH or correction still continues? We have to follow.
NVDA is a beautiful example of different scenarios possibility! If we look at the chart (right side) we simply may consider that correction is completed at 0.382 Retracement of last rally with clear abc form of correction but, is this the only possible scenario? Of course NOT
Flat corrections may mislead many traders. Being aware about flat corrections and its characteristics is necessary but not enough at all.
Being realistic is a key. We have to consider all possible scenarios and control our emotions. Traders who are long from the last low may not want to see the other possible scenario. They certainly wish to see new ATH but it may takes some more time than they expect!.
On the left side of the chart we can see the flat correction. In a flat correction wave (a) is a 3 leg wave. wave (b) typically goes above 0.618 Retracement and touches 0.786 and even goes higher to 0.88 Retracement . Then, when every one expect a new high it suddenly goes for a 5 leg down wave (c).
Which scenario is going to happen? No one knows. We have to use some risk management tools to manage our risk . Of course opening a position at such conditions is gambling not trading.
We always trade objectively and try to see all possible scenarios. Don't we?
NVDA is a beautiful example of different scenarios possibility! If we look at the chart (right side) we simply may consider that correction is completed at 0.382 Retracement of last rally with clear abc form of correction but, is this the only possible scenario? Of course NOT
Flat corrections may mislead many traders. Being aware about flat corrections and its characteristics is necessary but not enough at all.
Being realistic is a key. We have to consider all possible scenarios and control our emotions. Traders who are long from the last low may not want to see the other possible scenario. They certainly wish to see new ATH but it may takes some more time than they expect!.
On the left side of the chart we can see the flat correction. In a flat correction wave (a) is a 3 leg wave. wave (b) typically goes above 0.618 Retracement and touches 0.786 and even goes higher to 0.88 Retracement . Then, when every one expect a new high it suddenly goes for a 5 leg down wave (c).
Which scenario is going to happen? No one knows. We have to use some risk management tools to manage our risk . Of course opening a position at such conditions is gambling not trading.
We always trade objectively and try to see all possible scenarios. Don't we?
Note
Earning report was driving force to push it up. NVDA chose making new ATH path.
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