TESLA: First signs of the end of the pullback!! Pay attention!!On December 18th, the IVO indicator alerted us to weakness, which was confirmed with the oscillator on the 23rd. Since that day, Tesla has continuously decreased and is currently in a pullback phase, within a bullish trend. Therefore, we will only look for long positions when we clearly observe that the correction phase has ended.
---> What point are we currently at on the H4 timeframe?
TREND: Bullish
STRENGTH: Bearish
MOMENTUM: Bearish
OSCILLATOR: Showing oversold signals
FORECAST LINES: Bearish (price below the two red Ichimoku guideline lines).
---> When could be a good entry point for longs?
The correct point would be when an H4 candle closes above the first FORECAST LINE and MOMENTUM turns bullish.
---> And when will this occur?
When the price closes above 408.50.
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Strategy to follow:
ENTRY: We will open 2 long positions if the H4 candle closes above 408.50.
POSITION 1 (TP1): We close the first position in the 442 area (+8%).
--> Stop Loss at 371 (-8.8%).
POSITION 2 (TP2): We open a Trailing Stop position.
--> Initial dynamic Stop Loss at (-8.8%) (corresponding to 371 of position 1).
--> We modify the dynamic Stop Loss to (-1%) when the price reaches TP1 (442).
SETUP CLARIFICATIONS
*** How to know which 2 long positions to open? Let's say we want to invest 2,000 euros in the stock. We divide that amount by 2, and instead of opening 1 position of 2,000, we will open 2 positions of 1,000 each.
*** What is a Trailing Stop? A Trailing Stop allows a trade to keep gaining value when the market price moves in a favorable direction but automatically closes the trade if the market price suddenly moves in an unfavorable direction by a certain distance. That certain distance is the dynamic Stop Loss.
--> Example: If the dynamic Stop Loss is at -1%, it means that if the price falls by -1%, the position will close. If the price rises, the Stop Loss also rises to maintain that -1% during the increases, thus decreasing risk until the position enters into profit. This way, very strong and stable trends in price can be taken advantage of, maximizing profits.
