$NIO - Breakout From a Falling Wedge Pattern

1. PATTERN: Falling Wedge

2. TRADE TRIGGER: Breakout with an above-average-sized (open to close) bullish candle and above average volume.

3. TARGET: Outlined resistance area - previous support.

4. STOP-LOSS: 1 ATR, or 1x the average candlestick size (last 14 periods) below the 10 EMA.

5. RISK TO REWARD RATIO: abt 2.90

6. POSITION SIZE / RISK MANAGEMENT:
a) No more that 1% of your total equity at risk on an single trade, therefore: (Stop Loss (set logically as per above) / Entry Point) x 100 / Total Equity < 1

b) No more than 30% of your total equity at risk at any given moment

7. IMPORTANT NOTE: Remember that drawing lines on a chart means nothing if you do not command and deploy thorough risk management principles and rules.

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Tenacious Tribe - Quantified Trading Strategies