TESLA 4HR Large Symmetrical Triangle
Updated
Currently TESLA stock seems to have formed a nice symmetrical triangle.
Now , we still dont know direction yet but based on our TP calculations, we know were looking at a 20-30% move if this pattern plays out (~20% up, or ~30% down).
With that said we can get a basic trading plan outlined.
We have had a lot of upside movement lately so I will be expecting it to be a continuance pattern and break upwards, but not enough to risk my capital until confirmed ;)
TP Calculation :
Target = 159.91 / chance of reaching target 0.58 = 92.74$
IF we break upwards:
TP: ~92$ from break point or ~20%
SL: Last swing low, currently around 350$ (making a pretty bad R/R of ~1/1)
IF we break downside:
TP: ~92$ from break point or ~30%
SL: Last swing high, currently around 450$ ( making approximately 2:1 reward:risk)
In either case, please wait untill a fully closed break of the triangle happens ( higher risk), or even better until one full bar closes outside the triangle AFTER the break (lower risk, less reward).
Link for pattern info : thepatternsite.com/st.html
Now , we still dont know direction yet but based on our TP calculations, we know were looking at a 20-30% move if this pattern plays out (~20% up, or ~30% down).
With that said we can get a basic trading plan outlined.
We have had a lot of upside movement lately so I will be expecting it to be a continuance pattern and break upwards, but not enough to risk my capital until confirmed ;)
TP Calculation :
Target = 159.91 / chance of reaching target 0.58 = 92.74$
IF we break upwards:
TP: ~92$ from break point or ~20%
SL: Last swing low, currently around 350$ (making a pretty bad R/R of ~1/1)
IF we break downside:
TP: ~92$ from break point or ~30%
SL: Last swing high, currently around 450$ ( making approximately 2:1 reward:risk)
In either case, please wait untill a fully closed break of the triangle happens ( higher risk), or even better until one full bar closes outside the triangle AFTER the break (lower risk, less reward).
Link for pattern info : thepatternsite.com/st.html
Note
Correction, the approximate percentage for TP for a the short scenario is actually ~23% not 30%Note
Upside break at ~444.50TP: 536
SL: ~402
Trade closed manually
This is looking like a "fakeout" rather then breakout. I will be closing my long here at a small loss
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