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.
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