Feeling confused about Nvidia’s stock drop despite their stellar earnings report?
You’re not alone.
Market sentiment doesn’t align with financial performance.
In this guide, we’ll dive into how you can decode market behavior using Repeat Energy Patterns, based on the principles of W.D. Gann, to better predict stock trends and make informed decisions.
What you will learn:
How to identify and use Repeat Energy Patterns in trading
Steps to analyze Nvidia’s current trading chart
Repeat Energy Patterns: A Guide for Your Trading Decisions
Now, let’s talk about strategies.
What are repeat Energy patterns?
Repeat Energy Patterns come from WD Gann’s Stock & Commodities Course methods.
These patterns help us see trends and trading opportunities before other Technical Indicators and Patterns, such as Gartley or Butterfly.
Look for repeat patterns
In mid-August, the WD Gann Repeat Energy Indicator signaled a buy for Nvidia at $116.53.
Guess what happened next?
The price rallied up to the $129 level.
August 22: A turning point
On August 22, the indicator signaled a downtrend as the price broke at $126.93. This signaled a trend change as the price dips below the Repeat Energy Pattern. Take profit and exit the trade.
By August 27, I had made a live call to short-sell Nvidia BEFORE the earnings report on August 29.
What happened next?
Nvidia's stock fell even though revenue beat expectations. But the news wasn't enough to push the price up again.
Action plan
1. Use the WD Gann indicator.
On August 27, based on the downtrend signal, I recommended short-selling Nvidia. This wasn't a guess; it was based on the patterns we’ve been discussing.
2. Identify the repeat Energy pattern.
Examining the Stock Chart helps you see Repeat Patterns and price levels. Watch the market closely, and look for Repeat Energy Patterns to see if a change of trend, buy or sell opportunity.
Final words
The repeat Energy patterns indicate an implicit rule of the trend that drives the market. The market consistently makes lower lows, confirming the downward movement and leading to a drop in the stock price.
This trading method provides a framework for understanding market movements at the moment, not after the fact.
Remember, the key to trading is continuous learning and adapting. So keep honing your skills, stay informed, and don't fear taking calculated risks.
Happy trading!
Khit Wong and all members of Gann Explained LLC are NOT financial advisors, and nothing they say is meant to be a recommendation to buy or sell any financial instrument. All information is strictly educational and/or opinion. By reading this, you agree to all of the following: You understand this to be an expression of opinions and not professional advice. Any opinions, news, research, analysis, prices, or other information contained on this website is provided as general market commentary and education and does not constitute advice. The brand name of Gann Explained LLC will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information. You are solely responsible for the use of any content and hold Khit Wong, Gann Explained LLC all members harmless in any event or claim. FTC DISCLOSURE: Any income claims shared by myself, students, friends, or clients are understood to be true and accurate but are not verified in any way. Always do your own due diligence and use your own judgment when making buying decisions and investments in your business.
Recommended Content
Editors’ Picks
EUR/USD falls toward 1.0500 amid risk-off mood
EUR/USD has come under fresh selling pressure, easing toward 1.0500 in the European session on Thursday. The pair faces headwinds from risk-off flows due to rising geopolitical conflict between Russia and Ukraine and worries over the potential US tariffs on the EU. ECB- and Fedspeak are awaited.
GBP/USD stays pressured toward 1.2600 ahead of US data, Fedspeak
GBP/USD remains pressured toward 1.2600 in European trading on Thursday. The pair's underperformance could be attributed to a risk-aversion market environment. Traders stay cautious amid rife geopolitical tensions ahead of mid-tier US data and Fedspeak.
Gold price extends gains beyond $2,650 amid rising geopolitical risks
Gold price extends its bullish momentum further above $2,650 in Thursday's European session. Gold price risies for the fourth straight day, sponsored by geopolitical risks stemming from the worsening Russia-Ukraine war. US data and Fedspeak are next in focus.
Shiba Inu holders withdraw 1.67 trillion SHIB tokens from exchange
Shiba Inu (SHIB) trades slightly higher, around $0.000024, on Thursday after declining more than 5% the previous week. SHIB’s on-chain metrics project a bullish outlook as holders accumulate recent dips, and dormant wallets are on the move, all pointing to a recovery in the cards.
Why Nvidia’s story is far from over
Nvidia delivers another earnings beat: Nvidia exceeded expectations with $35.08 billion in revenue, a 94% year-over-year increase, driven by strong performance in its data center business, which more than doubled to $30.8 billion.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.