Key intakes on NVIDIA:
1. Market in a downtrend since the beginning of 2022
2. Downtrend losing momentum as of the last 2 mos
3. Price trading against a key congestion zone, as shown by the volume profile analysis, where the bulls should be springing from;
4. Would expect a stronger reaction from the bulls. Last month's candle did not engulf the preceding bearish candle, neither was it accompanied with ostensible volume.
5. 10 EMA and 50 EMA enclosing and cornering teh price. Yes! Mean reversion applies just as well in the monthly timeframe.
6. What I like the most about NVIDIA is that it is currently trading at an inflection point, in a value area. A break & close below support will tell you probable direction. A break & close above the trendline will also tell you direction. Logical stop losses and take profit targets well defined also, the volume profile analysis is making it easy for us to identify such areas.
Always remember that the number one priority is to manage risk at all costs. No matter the strength of your conviction.
No matter the legitimacy of the advice you receive from your broker or your subscription service or your trading ideas ... of course a sound trading system must include such rules as well. These are of the essence.
As a rule of thumb do not put at risk more than 1% of your capital on a single trade and do not put more than 30% of your capital at risk at all times.
1. Market in a downtrend since the beginning of 2022
2. Downtrend losing momentum as of the last 2 mos
3. Price trading against a key congestion zone, as shown by the volume profile analysis, where the bulls should be springing from;
4. Would expect a stronger reaction from the bulls. Last month's candle did not engulf the preceding bearish candle, neither was it accompanied with ostensible volume.
5. 10 EMA and 50 EMA enclosing and cornering teh price. Yes! Mean reversion applies just as well in the monthly timeframe.
6. What I like the most about NVIDIA is that it is currently trading at an inflection point, in a value area. A break & close below support will tell you probable direction. A break & close above the trendline will also tell you direction. Logical stop losses and take profit targets well defined also, the volume profile analysis is making it easy for us to identify such areas.
Always remember that the number one priority is to manage risk at all costs. No matter the strength of your conviction.
No matter the legitimacy of the advice you receive from your broker or your subscription service or your trading ideas ... of course a sound trading system must include such rules as well. These are of the essence.
As a rule of thumb do not put at risk more than 1% of your capital on a single trade and do not put more than 30% of your capital at risk at all times.