Backtesting $TSLA on 4H timeframe
Contrary to popular belief I think Tesla respects price action as shown on the chart, Tesla has been on an uptrend since the market started recovering in late March. Due to big news from the stock split it dramatically increased throughout August until beginning its downtrend at around $503 on September 1st. I utilized the Fib retracement tool and placed it from the beginning of the uptrend to the end of it and outlined a perfect spot for an entry which would've been between the 0.618 and the 0.786 as that is where is the stock begins its reversal. For an options trader a slightly OTM Call option with 2 week expiration on September 9th would've been the best move here exiting the trade on September 14th at either Take Profit 1 (TP1) or Take Profit 2 (TP2). As for a long term trader who doesn't mind time decay the best time to exit would've been on November 19th or November 25th which is Take Profit 3 (TP3) and Take Profit 4 (TP4).
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