Someone requested I look into NI and here's my feedback;
1) As much as possible, we want to avoid stocks that have a history of Price Gaps as we wouldn't want to be caught in a situation where we're more than 1R in a loss. This really messes up our risk-reward ratio.
2) It came to my attention that this looks suspiciously like a rising wedge. If we go back to basics, a rising wedge after a downtrend signals a continuation pattern where the main trend (i.e. Downtrend) is to continue.
Then again, markets are irrational and if you still insist on trading NI, do wait for the breakout, retracement and confirmation before entry. Cheers!
1) As much as possible, we want to avoid stocks that have a history of Price Gaps as we wouldn't want to be caught in a situation where we're more than 1R in a loss. This really messes up our risk-reward ratio.
2) It came to my attention that this looks suspiciously like a rising wedge. If we go back to basics, a rising wedge after a downtrend signals a continuation pattern where the main trend (i.e. Downtrend) is to continue.
Then again, markets are irrational and if you still insist on trading NI, do wait for the breakout, retracement and confirmation before entry. Cheers!