Tesla Inc. (TSLA) has been gaining strong momentum lately, and on the 4-hour chart, my BBofVWAP strategy has shown a notable signal. In this post, I’ll walk through how this custom strategy works and what the latest price action could mean for traders.
🔍 What is the BBofVWAP Strategy?
The BBofVWAP (Bollinger Bands of VWAP) strategy I use combines two powerful tools:
VWAP (Volume-Weighted Average Price) – to anchor the trade bias
Bollinger Bands – to track volatility and determine key exit points
Here’s how it works:
✅ Entry Point: When VWAP crosses above the Pivot Point and stays within the Bollinger Bands.
💡 Exit Condition: VWAP crossing below the lower Bollinger Band signals an exit.
💰 Profit Booking:
Partial profits are taken near R3 resistance level
Or when the price drops below the upper Bollinger Band
This method filters out noise and rides trends effectively while maintaining solid risk management.
📊 Current TSLA Chart Insight (4h)
In the current 4-hour setup:
We entered the trade at a pivot breakout (highlighted with a blue arrow on the chart).
VWAP continued to trade within the Bollinger Bands, keeping the position alive.
Price has climbed toward $287.25 and is hovering near key resistance levels.
R3 (328.92) acts as a potential profit-taking zone.
If VWAP crosses under the lower band, we’ll be out – clean and disciplined.
📌 Why This Strategy Works
🎯 Clear rules-based system for entries and exits
📉 Eliminates emotional decision-making
⚖️ Balances trend-following with mean-reversion logic
🔁 Works well across large-cap, high-volume stocks like TSLA
🧠 Final Thoughts on TSLA Setup
Tesla’s recent strength, combined with this BBofVWAP setup, gives a bullish but cautiously managed outlook. As always, managing risk with technical levels like VWAP, Pivot Points, and Bollinger Bands provides a more structured approach to volatile tickers.
🔍 What is the BBofVWAP Strategy?
The BBofVWAP (Bollinger Bands of VWAP) strategy I use combines two powerful tools:
VWAP (Volume-Weighted Average Price) – to anchor the trade bias
Bollinger Bands – to track volatility and determine key exit points
Here’s how it works:
✅ Entry Point: When VWAP crosses above the Pivot Point and stays within the Bollinger Bands.
💡 Exit Condition: VWAP crossing below the lower Bollinger Band signals an exit.
💰 Profit Booking:
Partial profits are taken near R3 resistance level
Or when the price drops below the upper Bollinger Band
This method filters out noise and rides trends effectively while maintaining solid risk management.
📊 Current TSLA Chart Insight (4h)
In the current 4-hour setup:
We entered the trade at a pivot breakout (highlighted with a blue arrow on the chart).
VWAP continued to trade within the Bollinger Bands, keeping the position alive.
Price has climbed toward $287.25 and is hovering near key resistance levels.
R3 (328.92) acts as a potential profit-taking zone.
If VWAP crosses under the lower band, we’ll be out – clean and disciplined.
📌 Why This Strategy Works
🎯 Clear rules-based system for entries and exits
📉 Eliminates emotional decision-making
⚖️ Balances trend-following with mean-reversion logic
🔁 Works well across large-cap, high-volume stocks like TSLA
🧠 Final Thoughts on TSLA Setup
Tesla’s recent strength, combined with this BBofVWAP setup, gives a bullish but cautiously managed outlook. As always, managing risk with technical levels like VWAP, Pivot Points, and Bollinger Bands provides a more structured approach to volatile tickers.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.