First MARA, Then SOFI, Now NIO Has Done It

This bullish move was seen in MARA and SOFI before huge gains. Is NIO next?

In trading and in life, simplicity is often a good thing.

If you are looking for a strong signal for continued momentum, look no further than the Anchored Volume Weighted Average Price (AVWAP) indicator.

It is simple to set up and all you need to look for is a cross above or below with strong volume. You do need to be using a platform that has AVWAP available.

I anchor to both recent highs and lows. These peaks and valleys are reversal points and as shares progress the AVWAP grows, often providing resistance or support.

If shares have a meaningful breakthrough (strong volume and/or follow up candle) it is often a signal that momentum will continue.

Take a look at MARA and SOFI, they break AVWAP and really get moving.

MARA

MARA daily candles

After breaking through the AVWAP from the July highs, shares continued for a total of more than 110% in three weeks.

Not all returns are this massive, but the break was notable and shares really started moving right after breaking through. They were tight prior to that point.

The gap above and continued hold above made this a viable entry.

SOFI

SOFI daily candles

SOFI is another recent example, with shares breaking through AVWAP in a big way and now continuing to climb higher.

I am watching for shares to get above 10.16, which would signal a push higher and where I would gain even more confidence for this bullish trade to continue.

NIO

NIO daily candles.

Yesterday we saw AVWAP break for NIO with a close above and on strong volume.

This is a nice set up for a continuation higher if shares can hold above VWAP and not dip back below.

I’ll be outlining NIO trade ideas tomorrow for upgraded subscribers, if shares cooperate and hold where they need to hold.

As always, I am happy to explain anything further or walk through any options srategies.

Let me know if you have any questions and have a great day of trading!

-Nate

@tradernatehere

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This service is for general informational and educational purposes only and is not intended to constitute legal, tax, accounting or investment advice. These are my opinions and observations only. I am not a financial advisor.

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