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 below 1.0400 as mood sours
EUR/USD loses its traction and retreats to the 1.0380 area in the second half of the day on Monday. The negative shift seen in risk mood, as reflected by Wall Street's bearish opening, supports the US Dollar and makes it difficult for the pair to hold its ground.
GBP/USD nears 1.2500 on renewed USD strength
GBP/USD turns south and drops toward 1.2500 after reaching a 10-day-high above 1.2600 earlier in the day. In the absence of high-tier macroeconomic data releases, the US Dollar benefits from the souring risk mood and weighs on the pair.
Gold falls below $2,600 amid mounting risk aversion
Gold fell below the $2,600 level in the American session on Monday, with US Dollar demand backed by the poor performance of global equities and exacerbated by thin trading conditions ahead of New Year's Eve.
Three Fundamentals: Year-end flows, Jobless Claims and ISM Manufacturing PMI stand out Premium
Money managers may adjust their portfolios ahead of the year-end. Weekly US Jobless Claims serve as the first meaningful release in 2025. The ISM Manufacturing PMI provides an initial indication ahead of Nonfarm Payrolls.
Bitcoin misses Santa rally even as on-chain metrics show signs of price recovery
Bitcoin (BTC) price hovers around $97,000 on Friday, erasing most of the gains from earlier this week, as the largest cryptocurrency missed the so-called Santa Claus rally, the increase in prices prior to and immediately following Christmas Day.
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.