NVIDIA forms a headshoulder formation

26 paź 2023

There are several on Trading View who have seen NVIDIA form a headshoulder formation.
I want to show that volume movements support this hypothesis.
Volume goes up at the formation of left shoulder 1 and at the start of head 2, but decreases towards the top and is weak at the beginning of the right shoulder 3, while it increases towards the termination of the right shoulder 4.
If there is a break down, it points towards a drop to 320 or more.

If you are a long term investor then this may be irrelevant or you may possibly get a buying opportunity.

Disclaimer of Liability. I only hold positions in NVIDIA via index funds.
Keep in mind you need to do your own research before buying and selling

27 paź 2023

Uwaga

Volume is an important indicator that is independent price. Most indicators are based on price.
Volume can support a price movement, or weaken a price movement, or be neutral relative to a price movement.
Fibonaccis is an example of another indicator that is independent of price. It is based on ratios.
It is important to use several indicators in a technical analysis, but not so many so that you end up in "Paralysis by Analysis".

1 lis 2023

Uwaga

There was marginal break down about 3% yesterday at one point, but not at the closing price. We'll have to see how it goes today. In the event of a break down, we should like to see increased volume.

2 lis 2023

Uwaga

The HS formation only gives a sell signal when there is a break down of more than 3% and preferably with increased volume.
But how long after formation can it happen? I have noted that a time interval corresponding to the width of the formation is calculated, i.e. in this case about 4 months.
I'm not familiar with statistical research on this, so it's probably empirical.
There is also another issue to be aware of. If there is another significant technical signal after the HD formation, the significance of the HD formation can be neutralized.