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Tesla (TSLA) - selling/stop-loss priceThis is an idea about when to sell Tesla shares following on from the split and subsequent price fluctuation. --- Summary - TL/DR: For a trading position taken near the recent trough in price (around $329 on 08 September 2020), $427 is a balanced exit price, based on recent trend lines , that reasonably protects profits and avoids a potential bear trap driven by price fluctuations. --- With the price having dipped following on from the stock split (and possibly SoftBank induced market moving trades) but now having regained some of its value, this might be a good time to exit a position for those thinking of taking profit. This is also perhaps an opportune time for some profit protecting stop-loss implementation. For the record, before we go any further, I am overall optimistic on Tesla performance (car and share price) and I think in the long term this stock has value. However, some people (myself included) might be thinking about protecting profits and setting stop losses based on recent price volatility . Note: 1, 2 and 3 refer to Trend Lines 1 (green), 2 (blue) and 3 (yellow). The idea behind this exit price is that the entry price was near the recent trough of around 08 September 2020. 1 shows that generally the Tesla share price has followed the support trend line and analysis based on trend lines generally have merit for this stock. This is evidenced in particular by how the price bounced upwards around this trend line on 08 September, the most recent price trough. However, for those that have purchased recently, using this support line as an indicator for selling or setting a stop loss would not work because the entry price would be higher than the support line. Thus a trend line following the price closer to what it currently is is needed. Drawing a trend line , 2, from the most recent trough (early September) would be better but would mean surrendering a lot of profit due to the line's angle if a selling price was based on this trend line . It would be better to have a trend line that more closely aligns to the current price, which leads to 3. As the recent two daily sessions have shown, the price is starting to move sideways and is generally starting to form a flag pattern . Although it's too early to say if this is a wedge or a rising / falling flag, the previous two sessions are enough to set a trend line tighter to the recent price, i.e. 3. Using this trend line , the support price for the next few day would be around $441. Using a 3% penetration level for confirmation of movement below the support level and to avoid a bear trap (a penetration level of 5% combined with a 3 day filter to account better for Tesla's volatility might also work, however has a higher risk of reducing profit substantially if the price declines dramatically as Tesla's is prone to sometimes doing) gives us a price of $427. Which is what I think is a good price for a balanced exit strategy/stop-loss particularly if the entry price was near the recent trough of 08 September 2020.
NASDAQ:TSLA
by slip_stream
1
Tesla (TSLA) exit / stop-loss priceThis is an idea about when to sell Tesla shares following on from the split and subsequent price fluctuation. --- Summary - TL/DR: For a trading position taken near the recent trough in price (around $329 on 08 September 2020), $427 is a balanced exit price, based on recent trend lines, that reasonably protects profits and avoids a potential bear trap driven by price fluctuations. --- With the price having dipped following on from the stock split (and possibly SoftBank induced market moving trades) but now having regained some of its value, this might be a good time to exit a position for those thinking of taking profit. This is also perhaps an opportune time for some profit protecting stop-loss implementation. For the record, before we go any further, I am overall optimistic on Tesla performance (car and share price) and I think in the long term this stock has value. However, some people (myself included) might be thinking about protecting profits and setting stop losses based on recent price volatility . Note: 1, 2 and 3 refer to Trend Lines 1 (green), 2 (blue) and 3 (yellow). The idea behind this exit price is that the entry price was near the recent trough of around 08 September 2020. 1 shows that generally the Tesla share price has followed the support trend line and analysis based on trend lines generally have merit for this stock. This is evidenced in particular by how the price bounced upwards around this trend line on 08 September, the most recent price trough. However, for those that have purchased recently, using this support line as an indicator for selling or setting a stop loss would not work because the entry price would be higher than the support line. Thus a trend line following the price closer to what it currently is is needed. Drawing a trend line, 2, from the most recent trough (early September) would be better but would mean surrendering a lot of profit due to the line's angle if a selling price was based on this trend line. It would be better to have a trend line that more closely aligns to the current price, which leads to 3. As the recent two daily sessions have shown, the price is starting to move sideways and is generally starting to form a flag pattern . Although it's too early to say if this is a wedge or a rising / falling flag, the previous two sessions are enough to set a trend line tighter to the recent price, i.e. 3. Using this trend line , the support price for the next few day would be around $441. Using a 3% penetration level for confirmation of movement below the support level and to avoid a bear trap (a penetration level of 5% combined with a 3 day filter to account better for Tesla's volatility might also work, however has a higher risk of reducing profit substantially if the price declines dramatically as Tesla's is prone to sometimes doing) gives us a price of $427. Which is what I think is a good price for a balanced exit strategy/stop-loss particularly if the entry price was near the recent trough of 08 September 2020.
NASDAQ:TSLA
by slip_stream
DJI: A nice little find - parallel channelIt doesn't matter what time frame you find stuff. Just share. That's what I do, so others can benefit (if they manage their losses properly). The 15 min channel is so curious. The obvious questions that will pop into minds are like: 1 - is that for real? 2 - how far will it go? It is real - if you see it. How far - nobody knows! Disclaimers : This is not advice or encouragement to trade securities. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
FOREXCOM:US30
by Captain_Walker
Three Drives Harmonic Chart PatternThe three drivers chart pattern is a well known harmonic chart pattern that acts as a trend reversal. The pattern consists of either three higher highs or lower lows which is an indication of a potential trend reversal. There are two different types of three drives pattern: Bullish Bearish Bullish Three Drives Pattern There are three different waves in the pattern as the name suggests, three drives. With the subsequent drives, there are lower lows that are being formulated in the pattern with three different bottoms. Once the third wave is completed and the low point has been observed, a buy signal can be created with formulating the Fibonacci levels and generating the buy signal with a Fibonacci extension of 1.27 or 1.628. For the stop-loss and take profit levels, you can formulate a new Fibonacci level with the start and end of the pattern and keep 161.8% as the stop-loss level and 61.8% as the take profit level. The important point that confirms the drives is a similar time period between the uptrend after the 1st wave and 2nd wave also a similar time period between the 2nd wane and 3rd wave for the downtrend. The bearish three drives pattern is completely opposite of the bullish three dives pattern and can be spotted in a similar manner. The three drives pattern belongs to the family of harmonic patterns and thus makes use of not just chart patterns but also technical retracement levels to validate the pattern. A three-drive pattern that does not meet the retracement criteria can be discarded. The pattern is therefore qualitative as well as quantitative in nature. ---------------------------------------------------------------------------------------- If you find the post useful, please like and share our ideas with the community! - Mudrex
COINBASE:BTCUSDEducation
by Mudrex
5
NZDCAD(1D) - rare optimal opporunityNZDCAD(1D) rarely shows a very-sharp ATR switch. There are some interesting features in the price action which create probabilities for the south at this particular time. I've labelled this a potential short (note disclaimers below). If you short this, you have to be prepared to lose your stop-loss. I do not give advice - so nothing on stop-loss. If the bull rebellion is crushed to the south, I do not know how far price may move south. This could be a long term trade, designed only for traders who can wait many days for it to unfold. Disclaimers : This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, or miss opportunity, kindly sue yourself.
Editors' picks
Short
by Captain_Walker
4
BTCUSD 12h obvious long tradeAfter forming a beautiful double bottom pattern, BTCUSD clears key resistance level at 11600, which coincides with it reclaiming previous rising resistance line as a support. In addition it moves above ema20. MACD prints a buy trade signal as well. We therefore enter a long position, targeting 12500-13000 area and placing stop loss below the recent double bottom. We will also consider exiting the trade if MACD shows a sell signal and/or RSI moves into the overbought area above 75
KRAKEN:BTCUSDLong
by PurseLance
NIO:NYSE - SuperTrail and Trade Station working togetherLot happening in this chart of NIO, but thought I'd just show you how a live trade looks in TradingView using Trade Station. You can see on the right hand side where I bought the stock (added automatically by TradingView and doesn't move), and where my current stop loss is set (this one I can adjust and move up and down to change my stop). I could also add a take profit (also adjustable) if I wanted to try and take advantage of spikes - like in this case where it spiked just short of $21 before pulling back. You can see at a value of 20% for a SuperTrail / Trailing Stop Loss where I have entered and exited the trade (as confirmed by the Trade Station buy line). You can also see the approximate gains made if you had trusted and followed the trail. I think its interesting how before and after the buy and sell the 20% signal remained true for this period. Best thing I like about the trading integration with Trading View is how easy it is to visualise where your entry and exits are, and you can literally just drag the line up and down to change your position. Its cool. I like it.
NYSE:NIOLong
by zAngus
The Big Scoop! Gold v US DollarFollowing up from my previous video on price of Gold, I show an startling inverse correlation between Gold and strength of the US Dollar (DXY). Before February 2020, Dollar strength basically followed Gold. But after February - the world changed. Keep in mind this was when COVID struck, and the FED flooded the economy with basically 'air money'. COVID popped the baloon that was expanded recklessly for about 11 years. The FED then put 'sellotape' on the balloond and did a fair job of reinflating it, with more 'air' of course. The effect of panic-striken money printing was to cause a loss of strength in the US Dollar against other currencies. Other factors like trade and price of Oil also account for Dollar strength in part. So post-COVID,around April to end of May 2020, the Dollar took on a decompensation pattern and crashed. It could get even worse, as today the FED re-affirmed it's commitment to doing 'whatever it takes'. This is probably not good news for the Dollar, but it's good news for those seeking upside on Gold. Disclaimers : This is not advice or encouragement to trade securities. No predictions and no guarantees supplied or implied. Heavy losses can be expected. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, or miss opportunity, kindly sue yourself.
TVC:DXY
by Captain_Walker
1
Using Stop Loss correctly | Do not set up Stop Loss in AdvanceCONTENT 1 - Reason Why you should not set up Stop Loss Orders in Advance. 2 - The Best way to Use Stop Loss. --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Why you should not add your Stop Loss in Advance? If your stop loss is placed with a right logic then market will respect it. Market will test the stop loss again, giving you the chance to exit out. Stop Loss are mostly placed in an area where bulls and bear swap their positions. Bulls will be selling their longs and bears will be buying their shorts at stop loss. Consider it as a Breakout point. Market breaks it and then tests it again in form Pullbacks. 80% of the time you will see the stop loss is tested and reversing under 5 bars. Traders who use tight stops just above minor high/lows are trapped to exit from the market. 1- Stop Loss is tested and reverses back to entry direction. 2- Stop Loss is tested with a Breakout in opposite direction and pullback is made to Stop Loss. When bulls and bear swap their positions, all of the weak bulls and weak bears are out of the market. Only the aggressive bulls and bears are controlling the market. 1 – Aggressive Bulls and Bears They add more to their position at stop loss area because they are betting on Reversal to Fail and they mitigate their risk by- a - Exit breakeven on their first entry and profit on their second entry. b – Exiting Breakeven for first and second entries. 2 – Weak Bulls and Bears They are mostly beginners and are afraid to risk more. They find more suitable to trade a good risk/reward than high probability trade. They set stop loss near to the previous swing High/Low. Once their stop loss is hunted, they are out of the market. They will only trade when they see confirmation of trend in either direction. What is the best way to use Stop Loss? Market loves to trap to traders, especially weak bulls and bears. Setting up stop loss in advance always creates a level of Micro Support/Resistance. Best way to tackle this problem is to watch the market reaction at the Stop Loss. First test (called Stop Loss Bar) will be obviously like a good Breakout, (you might think it is going up higher but it is not confirmed yet). Wait for the next candle (called Follow Through Bar) to close. The strength of the Stop Loss Bar is defined by the Follow Through Bar. Follow through bar significantly tells how the market is reacting after a key point is tested. Strength Indicators for Follow Through Bar If closing as consecutive Bar to the Stop Loss Bar (Bull-Bull or Bear-Bear Candles) with closing on its High and no or small wick on top then likely to see market reversing and better to look to exit out. If closing as opposite direction bar to Stop Loss Bar (Bull-Bear or Bear – Bull Candles ) then hold your position and wait for the market to react further. Don’t exit yet. It can be a trap. If closing as Doji then don’t exit. Bulls and Bears are balanced. Confusion. If market goes into Tight Trading Range after Doji then expect 50-50 for Bull and Bear Breakout. Follow through bars after a Doji will give you a hint whether to exit or hold the position. If you find inside bar irrespective of Bull or Bear then wait for information. Having wicks longer or equal to the size of body, on top for Bull Stop Loss Bar and on Bottom for Bear Stop Loss Bar is a sign of Weakness. Wait for more follow through and then decide to exit or hold. If you find follow through bar closing as same of Stop Loss Bar (Bull-Bull and Bear Candles) If it is having wicks on top and bottom with a small body then wait for more information (more candles) market is not confident going above your stop loss yet so a good chance to trap some traders. NOTE : You are likely to find out that terms I use are not conventional. I use the nomentclature which I find comfortable. You are free to name anything you want. The Logic behing those things matters not the names. If you find this content useful then do let me know in Comments. Thanks
Education
by Good_Trading_Calls
4
SuperTrail Indicator Video / Trailing Stop LossWas just playing around with the replay function in Trading View and thought I'd share this to show how the SuperTrail indicator worked on a couple of different stocks. The SuperTrail is basically a modified SuperTrend but instead uses a percentage to allow you to manually set the trail level for individual stocks. Some need a wider trail, some a smaller one. You might set a trail based on the last months range, or the last 3 months. Totally up to you and the stock itself. The idea is to find what I call the natural range of a stock based on its past behaviour and hope that the stock maintains this range into the future. You can of course simply adjust it from time to time as the stock and the market goes through different behaviours (eg bull or bear), reacting to good or bad company news etc. I use the percentage value that I come up with to set as my stop loss / trailing stop with my broker. This way if the stock drops below the trail value (which automatically moves up as the stock price moves up, but never down if the stock goes down), the stock will automatically sell and I will hopefully bank any profits. Works best of course with trending stocks. You could use the buy signal to go long and the sell signal to short. Main thing for me is I don't have to sit and watch the market and worry how my shares are going. If one is starting to go the wrong way, I automatically get out. Completely up to you how you use it. It is a very simple system :) If you want to see more examples, just have a look at my profile, and if you would like access to the script, just message me and I'll send you the details.
NASDAQ:TSCOEducation
by zAngus
3
Trade Planning - How to Trade PlanThis video explains how to effectively trade plan to limit your risk and to maximize your gains. When it comes to Risk Management and Trade Planning, it's important to maintain a clear mind about the possibility of the asset your assessing going in either bullish or bearish direction. Furthermore, this video explains some ideas on how and where to place stop losses based upon entry confirmations and provides insights about position managing your trades as they develop into a winner. I hope you find this video informative and hope you use this video to your best advantage with your day-to-day trading activities. Thanks for watching. Always remember to trade safe - trade well. Regards, Michael Harding RISK DISCLAIMER Information and opinions contained with this video are for educational purposes only and do not constitute trading recommendations. Trading Forex on margin carries a high level of risk and may not be suitable for all investors.
FX:XAUUSDEducation
by Michael_Harding