NVIDIA and Tesla shares to track higher or lower?
With NVIDIA shares already at record highs, IGTV's Angeline Ong takes a look at what the ‘technicals’ tell us ahead of its earnings with Thiru Nagappan, founder of Master the Markets. Tesla also under the spotlight.
(AI Video Summary)
Using the Smart Money Indicator in trading
In this video interview, Angeline Ong talks to Thiru Nagappan, founder of Master the Markets, about a tool called the Smart Money Indicator. Nagappan explains that he used to work in cardiovascular pharmacology, but now uses statistical analysis to make trading decisions. The Smart Money Indicator, created in the 1960s, helps traders figure out when to exit a trade by looking at profits and probabilities.
Analysing Tesla
To give an example, Nagappan uses Tesla. He shows how the Smart Money Indicator can help traders spot potential highs and lows, as well as identify trends and phases on different time frames. By using this tool, traders can create strategies and decide when to close a trade based on probability. Nagappan also suggests combining the Smart Money Indicator with other indicators, fundamentals, and news.
Analysing NVIDIA
Ong then asks Nagappan to analyse NVIDIA, considering their upcoming earnings announcement. Nagappan explains that no stock can keep rising forever, and that the further a stock moves from its lowest point, the higher the chance of it reaching a peak. He looks at multiple time frames to understand NVIDIA's current trend and phase, and warns traders to be wary of a possible downturn despite the current upward trend. Using the Smart Money Indicator, Nagappan shows how Fibonacci retracement levels can be used to predict future price movements based on previous tops and bottoms.
Nagappan emphasises that no strategy is perfect, but by understanding probabilities and managing risks, traders can make profits in the long run. Ong thanks Nagappan and expresses interest in future discussions on risk probability and reward-to-risk ratios.
Overall, the video explains how the Smart Money Indicator can be used to make trading decisions by analysing probabilities and setting exit points. Examples are given using Tesla and NVIDIA, showing how the indicator can help identify trends and potential turning points in the market.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Seize a share opportunity today
Go long or short on thousands of international stocks.
- Increase your market exposure with leverage
- Get spreads from just 0.1% on major global shares
- Trade CFDs straight into order books with direct market access
Live prices on most popular markets
- Forex
- Shares
- Indices
