Below are the screenshots of all the NVDA practice trades with a percentage profit of more than 200%. The signal bar is the rightmost bar in each of the charts below.
Here are some observations:
- Most of the signal bars have a close near the high (for buy signal) or the low (for sell signal)
- There is normally some form of compression inside the channel, followed by an expansion out of the channel.
Here’s one possible way to identify compression followed by expansion. Use ATR(3). ATR should dip as the channel progresses and increase on breakout.
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