Here’s how we traded Navitas Semi ($NVTS) – April 21, 2026
Read the transcript HEREKey Takeaways
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Average Convergence is Power: When the 50-day and 200-day moving averages are flat and touching, it represents a period of extreme equilibrium. The subsequent move out of that range is typically high-velocity.
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Price Proximity Matters: The best setups occur when the stock price is trading just above—not far extended from—these converging averages.
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Ignore the Noise, Trade the Signal: There was “nothing special” about the days leading up to the $NVTS breakout. The signal was the volume spike and the break of the $10.00 resistance level.
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The Line of Demarcation: In active trading, VWAP acts as the ultimate “line in the sand.” Above it, the bulls are in control; a cross below it suggests the “meat” of the move is over for that session.
The Navitas Blueprint: How to Trade the “Moneymaker” Pattern
The Power of Convergence
In the world of technical analysis, we often look for “crossovers,” but the real money is made in the convergence. In our recent trade of Navitas Semiconductor ($NVTS), we identified what I call the “Moneymaker” pattern. This happens when the 50-day and 200-day moving averages flatten out and squeeze together. It tells us that the market has reached a point of absolute agreement on price over both the medium and long term. When that agreement finally breaks, the result is usually a vertical explosion.
Patience vs. Participation
Many traders get bored during the sideways “grind” of a converging base. They want action every day. But professional trading is about waiting for the signal. We didn’t buy $NVTS because we had a “hunch” it would go up; we set an alert at $10.00 and waited. When the stock cleared that level on institutional volume, the “launching pad” was confirmed. Even with a slightly late entry at $10.95, the stock rewarded us with a 41% gain in a heartbeat.
Knowing When to Say “Thank You”
The hardest part of a vertical trade isn’t the entry—it’s the exit. When a stock is up 40% in a few days, the adrenaline is high, and greed starts to whisper that it’s going to the moon. This is where we shift to objective metrics. By using a multi-timeframe analysis and watching the VWAP (Volume-Weighted Average Price) on the 5-minute chart, we found our “line of demarcation.” As soon as the price drifted back to the VWAP, we closed the position. No guessing, no “hoping”—just disciplined execution.
Build a Business, Not a Hobby
If you exited this trade early because you were “scared” to lose a small profit, you were trading on psychology. If you stayed in until the VWAP signal, you were trading a process. At Stock Market Mentor, we focus on moving you from the former to the latter. Trading is a business, and like any successful business, it requires a repeatable, objective operating manual.
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