TA Education 7|NVDA Breaks Below 5-Day MA: Will Selloff Accelerate?
@Tiger_comments:
Hi, tigers! Here is Part 2 of MA: another 4 trading principles. Let’s start this week’s lessons!1. Minor Breakdown: Fleeting Pullback OpportunityThe Pattern: This occurs when the price momentarily dips below a rising Moving Average but quickly recovers and closes back above it. Crucially, the Moving Average line itself maintains its upward slope throughout the event.Market Implication: This signals a classic "shakeout" or "bear trap" rather than a genuine reversal. It suggests that the dip was an emotional overreaction that cleared out weak hands, leaving the primary uptrend intact and poised to resume.Mechanism: The brief drop triggers stop-loss orders situated just below the MA, creating a pool of liquidity. Institutional traders use this opportunity to accumulate positions at a "discoun