Understanding the new situation on NIO

26 мар. 2021 г.

We have been making several analysis + execution ideas on NIO, and we have been able to avoid low-quality setups by waiting for the right moments. (to make the most of this post, check the link to related ideas to get an idea of the whole process from the beginning) Today we will retake a look at what is happening right now.


After breaking the descending trendline (inner yellow line), we wait for the corrective structure on the edge of it (white line). However, the price kept going lower without executing our setup based on breakout movements.


So, which is our perspective right now?: Our main idea is "Only trade if the price breaks the key trendline" and then wait for the price to make a formation on the Trading zone.
We will better explain this concept with a new image.



Here you can the ideal movement we will be waiting for. If that happens, we expect to find an opportunity with a Risk-Reward Ratio above 2.5 (that means that for every dollar we are risking on this setup, we are aiming to make 2.5USD)

What happens if the price does not break the white trendline?: Then the next zone we should expect to reach is the support zone at 32.00 (that would be something to pay attention to because if the price goes below that zone, we will enter on a situation where the price will have lost a key bullish zone and as a consequence more bearish pressure should be something to think about it.

Conclusion: Our main trading philosophy is to wait patiently for movements that we consider high-quality situations. In this case, we have our bullish template, and we will only trade if that happens. Otherwise, we will protect our money by avoiding confusing situations.



If you have any doubt or ideas, please share them in the comment box!

Thanks for reading!