Textbook UTAD • LPSY Formation • Bearish Divergence on 3D QQQ Trend
📌 Overview
NVDA is showing a complete Wyckoff Distribution across all major timeframes. The Monthlys last major push has been extremely weak volume, The Weekly chart printed a clean UTAD, the Daily/3D shows a fractal UTAD, and the 3-Day QQQ trend reveals a bearish divergence by closing above its last swing, while NVDA closed below — confirming supply dominance.
This combination strongly suggests NVDA is transitioning from Phase C → Phase D, with markdown likely into the AR and below.
🟦 1. WEEKLY — Completed UTAD, Now Phase D
The Weekly structure is extremely clean and follows classic Wyckoff logic:
Phase A
PSY
Buying Climax (BC)
Automatic Reaction (AR)
Secondary Test (ST)
Phase B
Wide, choppy rotation while the Composite Operator distributes.
Phase C — UTAD
NVDA broke above Phase B highs, failed immediately, and reversed with increasing sell pressure.
This is the exact spot where smart money typically finalizes distribution.
Phase D — Current
The last two rallies have formed LPSYs, each weaker than the last:
Lower highs
Shortened thrust
Volume fading on upswings
Downside volume expanding
Interpretation:
Weekly is firmly in Phase D, preparing to test the AR (≈ $120). Followed by SOW-B ≈ $93
Failure of this zone opens Phase E (markdown).
🟪 2. 3-DAY NVDA — Fractal UTAD of the Weekly Distribution
On the 3-Day chart, NVDA produced a smaller UT and UTAD inside the larger weekly UTAD.
This is a fractal distribution, confirming:
A smaller distribution nested inside a larger one
CO selling on both timeframes
Supply overwhelming diminishing demand
This also aligns perfectly with the behavior of Phase C → D.
This is one of the strongest bearish Wyckoff signals you can get.
🟦 3. 3-Day QQQ Trend — Clear Bearish Divergence
Above the NVDA 3D chart is the QQQ 3-Day
• When NVDA closes below its last swing, while the market held above, that shows weakness.
This is momentum divergence:
Demand decelerating
When the leaders start to lag, thats something to cause concern.
Its a classic condition during UTADs in distribution tops
When a UTAD forms with divergence, Wyckoff views it as Demand is drying up.
🟧 4. MONTHLY — Macro Distribution Entering Phase D
The Monthly chart confirms the big picture:
Massive vertical run → PSY + BC
First shift in behavior → AR
Controlled retest → ST
Drift sideways → Phase B
Final push → Monthly UTAD
Rejection with increased supply → Phase C complete
Now price is failing the retest and rolling over into Phase D.
The Monthly and Weekly now align, which greatly increases the probability of sustained markdown.
🟥 5. Wyckoff Markdown Projection Path
Based on the current structure:
1️⃣ Current Zone
Weak LPSY → low-volume rally failures. I expect some chop, followed by one last UT of the chop highs, with a rejection between $185-$195. IF we reclaim and hold $195 = Invalidation, otherwise:
2️⃣ SOW (Sign of Weakness)
A decisive breakdown below the most recent structure lows.
3️⃣ First Major Target: AR Zone
$120
Every completed distribution returns to test the AR.
4️⃣ Sow Break (Phase E Begins)
Targets:
$102 (Phase A low)
$90-102 (Redistribution zone)
$76 (Final stopping area; Monthly value reset)
5️⃣ Bear Market Behavior
If the SoW breaks, NVDA enters a true Phase E markdown —
smooth, directional, and supply-driven.
🟩 6. Invalidation
To negate this bearish Wyckoff view:
➡️ NVDA must reclaim and HOLD above the UTAD high.
Given the 3D divergence and repeated LPSYs, this has low structural probability.
🟦 7. Final Thoughts
NVDA is aligning across all major timeframes in one of the clearest Wyckoff distribution sequences of the year:
Monthly UTAD
Weekly UTAD → LPSYs → SOW
Daily/3D fractal UTAD
3-Day QQQ divergence
Volume shift confirming supply
Everything here points toward Phase D → Phase E, with markdown into the AR and below. I think its important to not repeatedly try and call tops so if this idea is invalidated I will remain neutral, until I see redistribution below phase b, but I also think that the weakness in volume, and the MTF alignment is too much to ignore
If this continues to play out that would make all of 2025 a distribution. If that is the case, the markdown phase could play out throughout all of 2026 and into 2027. I know people say this every year/month/day but this is the first time, I personally, have seen this kind of alignment and supporting evidence across timeframes. Time will tell.
Good luck in 2026 everybody
📌 Overview
NVDA is showing a complete Wyckoff Distribution across all major timeframes. The Monthlys last major push has been extremely weak volume, The Weekly chart printed a clean UTAD, the Daily/3D shows a fractal UTAD, and the 3-Day QQQ trend reveals a bearish divergence by closing above its last swing, while NVDA closed below — confirming supply dominance.
This combination strongly suggests NVDA is transitioning from Phase C → Phase D, with markdown likely into the AR and below.
🟦 1. WEEKLY — Completed UTAD, Now Phase D
The Weekly structure is extremely clean and follows classic Wyckoff logic:
Phase A
PSY
Buying Climax (BC)
Automatic Reaction (AR)
Secondary Test (ST)
Phase B
Wide, choppy rotation while the Composite Operator distributes.
Phase C — UTAD
NVDA broke above Phase B highs, failed immediately, and reversed with increasing sell pressure.
This is the exact spot where smart money typically finalizes distribution.
Phase D — Current
The last two rallies have formed LPSYs, each weaker than the last:
Lower highs
Shortened thrust
Volume fading on upswings
Downside volume expanding
Interpretation:
Weekly is firmly in Phase D, preparing to test the AR (≈ $120). Followed by SOW-B ≈ $93
Failure of this zone opens Phase E (markdown).
🟪 2. 3-DAY NVDA — Fractal UTAD of the Weekly Distribution
On the 3-Day chart, NVDA produced a smaller UT and UTAD inside the larger weekly UTAD.
This is a fractal distribution, confirming:
A smaller distribution nested inside a larger one
CO selling on both timeframes
Supply overwhelming diminishing demand
This also aligns perfectly with the behavior of Phase C → D.
This is one of the strongest bearish Wyckoff signals you can get.
🟦 3. 3-Day QQQ Trend — Clear Bearish Divergence
Above the NVDA 3D chart is the QQQ 3-Day
• When NVDA closes below its last swing, while the market held above, that shows weakness.
This is momentum divergence:
Demand decelerating
When the leaders start to lag, thats something to cause concern.
Its a classic condition during UTADs in distribution tops
When a UTAD forms with divergence, Wyckoff views it as Demand is drying up.
🟧 4. MONTHLY — Macro Distribution Entering Phase D
The Monthly chart confirms the big picture:
Massive vertical run → PSY + BC
First shift in behavior → AR
Controlled retest → ST
Drift sideways → Phase B
Final push → Monthly UTAD
Rejection with increased supply → Phase C complete
Now price is failing the retest and rolling over into Phase D.
The Monthly and Weekly now align, which greatly increases the probability of sustained markdown.
🟥 5. Wyckoff Markdown Projection Path
Based on the current structure:
1️⃣ Current Zone
Weak LPSY → low-volume rally failures. I expect some chop, followed by one last UT of the chop highs, with a rejection between $185-$195. IF we reclaim and hold $195 = Invalidation, otherwise:
2️⃣ SOW (Sign of Weakness)
A decisive breakdown below the most recent structure lows.
3️⃣ First Major Target: AR Zone
$120
Every completed distribution returns to test the AR.
4️⃣ Sow Break (Phase E Begins)
Targets:
$102 (Phase A low)
$90-102 (Redistribution zone)
$76 (Final stopping area; Monthly value reset)
5️⃣ Bear Market Behavior
If the SoW breaks, NVDA enters a true Phase E markdown —
smooth, directional, and supply-driven.
🟩 6. Invalidation
To negate this bearish Wyckoff view:
➡️ NVDA must reclaim and HOLD above the UTAD high.
Given the 3D divergence and repeated LPSYs, this has low structural probability.
🟦 7. Final Thoughts
NVDA is aligning across all major timeframes in one of the clearest Wyckoff distribution sequences of the year:
Monthly UTAD
Weekly UTAD → LPSYs → SOW
Daily/3D fractal UTAD
3-Day QQQ divergence
Volume shift confirming supply
Everything here points toward Phase D → Phase E, with markdown into the AR and below. I think its important to not repeatedly try and call tops so if this idea is invalidated I will remain neutral, until I see redistribution below phase b, but I also think that the weakness in volume, and the MTF alignment is too much to ignore
If this continues to play out that would make all of 2025 a distribution. If that is the case, the markdown phase could play out throughout all of 2026 and into 2027. I know people say this every year/month/day but this is the first time, I personally, have seen this kind of alignment and supporting evidence across timeframes. Time will tell.
Good luck in 2026 everybody
Trade active
I am short on the retest of the breakdown today at ~180.75. The rejection of the zone was clean enough for me to put risk on
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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.