NIO Wedge Breakout Continues
NIO continues to move higher after breaking out of of the falling wedge pattern and topping the 200-day moving average, currently up a little over 10% today and +20% from my entry of $10.77 on 7/13.
The current price candle is yellow which indicates extreme bullish momentum behind price; yellow candles tend to indicate that price is becoming overbought and approaching a short-term top. With this push higher I've moved my stop-loss up to $11.71, just below the yesterdays yellow daily candle and into profit so the trade is guaranteed to pay out now if price reverses. For those with a lower entry price than mine and can afford some volatility and still remain in the green, stop-loss 2 is recommended as that was the the last higher low(HL) made in price before NIO made a new local higher high(HH). As price makes new higher highs on a chart I move my stop-loss to just below the most recent higher low as those are the last levels of support by buyers. If those higher lows are violated to the downside it likely means that sellers are in control of price going forward. Stair steps up: move your stop-loss to just below the last step price was on before it progressed to the next higher step.
My strategy with yellow candles is to move my stop loss to just below each yellow candle as price moves higher since price tends to continue to drift lower once the bottom of a yellow candle is breached on a pullback, reference previous yellow candles on the chart for historic moves after yellow candles form. For now I'm using yesterdays yellow candle as my stop-loss level since todays yellow candle is still live. Once the market closes today I will move my stop-loss to just below todays yellow candle.
The PPO is still showing positive short-term momentum with the green PPO line rising above the purple signal line. Both lines being above the 0 level indicate intermediate to long-term positive momentum.
The TDI indicator shows the green RSI line above the 60 level which indicates a short-term bullish trend. The green RSI line is trending between the 40-80 level which indicates an intermediate to long-term bullish trend. The RSI line is approaching the 80 level though which indicates short-term overbought conditions; price tends to reverse after the 80 level is tagged in the RSI. The RSI is also above the upper white Bollinger Band which also is a sign of extreme bullish momentum and tend to indicate a pullback in price is likely once the RSI moves back below the upper BBand. However, you generally want to stay long as long as the RSI remains above the upper band, and stay short when the RSI is below the lower BBand.
The TDI indicator is the one that is painting my price candles and giving me the yellow overbought conditions. Candles turn yellow when the green RSI line is above the upper Bband. You can find my TDI indicator here and add it to your own chart template:![Traders Dynamic Index(TDI) + Momentum Candles[CW_Trades]](https://s3.tradingview.com/e/EMdt1Ate_mid.png)
The current price candle is yellow which indicates extreme bullish momentum behind price; yellow candles tend to indicate that price is becoming overbought and approaching a short-term top. With this push higher I've moved my stop-loss up to $11.71, just below the yesterdays yellow daily candle and into profit so the trade is guaranteed to pay out now if price reverses. For those with a lower entry price than mine and can afford some volatility and still remain in the green, stop-loss 2 is recommended as that was the the last higher low(HL) made in price before NIO made a new local higher high(HH). As price makes new higher highs on a chart I move my stop-loss to just below the most recent higher low as those are the last levels of support by buyers. If those higher lows are violated to the downside it likely means that sellers are in control of price going forward. Stair steps up: move your stop-loss to just below the last step price was on before it progressed to the next higher step.
My strategy with yellow candles is to move my stop loss to just below each yellow candle as price moves higher since price tends to continue to drift lower once the bottom of a yellow candle is breached on a pullback, reference previous yellow candles on the chart for historic moves after yellow candles form. For now I'm using yesterdays yellow candle as my stop-loss level since todays yellow candle is still live. Once the market closes today I will move my stop-loss to just below todays yellow candle.
The PPO is still showing positive short-term momentum with the green PPO line rising above the purple signal line. Both lines being above the 0 level indicate intermediate to long-term positive momentum.
The TDI indicator shows the green RSI line above the 60 level which indicates a short-term bullish trend. The green RSI line is trending between the 40-80 level which indicates an intermediate to long-term bullish trend. The RSI line is approaching the 80 level though which indicates short-term overbought conditions; price tends to reverse after the 80 level is tagged in the RSI. The RSI is also above the upper white Bollinger Band which also is a sign of extreme bullish momentum and tend to indicate a pullback in price is likely once the RSI moves back below the upper BBand. However, you generally want to stay long as long as the RSI remains above the upper band, and stay short when the RSI is below the lower BBand.
The TDI indicator is the one that is painting my price candles and giving me the yellow overbought conditions. Candles turn yellow when the green RSI line is above the upper Bband. You can find my TDI indicator here and add it to your own chart template:
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