NVDA rebound after PANIC SELLING
This idea is a perfect example of how the market gives you different signs at the reversal points.
Let's recap from the beginning:
1. First, there was the CRACK pattern of the support, which warns of a bearish move.
2. There was an attempt to go higher which did not work out.
3. There was a GAP DOWN, that needed to materialize the CRACK pattern to the downside, but it did not act right, and did not spill right away and there was a bounce above the broken pink support line.
4. After #3, you would expect a Bullish move, the BLUE trajectory, since #3 acted as a real-time lookalike of a SPRING by Wyckoff methodology. But the BLUE did not materialize, so it did not "act right" according to Jesse Livermore.
5. When we started going down again on wider and wider bearish candles, this confirms again the CRACK PATTERN.
What is the CRACK PATTERN?
The crack pattern is when there is a CLEAR support/resistance line, that has been "cracked", but then there is a "retest" a false move, to the other side, as if the CRACK is the false move, but the CRACK signifies the upcoming strong move. Once the CRACK is being CRACKED again, the big explosive move should come.
6. The CRACK pattern materialized, and we got the spilldown = STRONG SHORT MOVE.
7. See my educational idea about this CRACK PATTERN, as "found" before the fact, this time it was more tricky than usual since it did not follow "the right way" as right away as usually happens on a weaker stock since NVDA has a bullish outlook. So it "put out a fight. Or in the puppet master view... if the public want to buy higher before the fall... there is no reason to sell him lower... so the price rebound and the fall did not materialized right away.
8. The moral lesson from this, is that in realtime, you need to change your hypothesis as you go. Once a signs for strong movement happen, then you want it to "ACT RIGHT". If it does not act the way you know, you need to quickly change your direction.
