Elliott Wave: a potential Wave 3 or Wave C in Tesla
The price of Tesla (
TSLA) had been going down in a 5 waves manner, which was followed by a double zigzag correction,
implying the next possible move will be another 5 waves decline
The only 2 possible patterns which can be formed in 5-3-5 are either an impulse (5-3-5-3-5) or a zigzag (5-3-5)
Therefore we can set two targets for this trade (or just separate as 2 trades)
For the first one, assuming we enter a short at $713, the stop loss will be $780.72 (above the end of wave b), the take profit will be $467.96 (assuming wave c = wave a), which give us a 1:3.6 risk/reward ratio
For the second one, the take profit will be $341.07 (assuming wave c = 1.618 x wave a), which give us a 1:5.4 risk/reward ratio
P.S. my analysis was done in log scale
TSLA) had been going down in a 5 waves manner, which was followed by a double zigzag correction,implying the next possible move will be another 5 waves decline
The only 2 possible patterns which can be formed in 5-3-5 are either an impulse (5-3-5-3-5) or a zigzag (5-3-5)
Therefore we can set two targets for this trade (or just separate as 2 trades)
For the first one, assuming we enter a short at $713, the stop loss will be $780.72 (above the end of wave b), the take profit will be $467.96 (assuming wave c = wave a), which give us a 1:3.6 risk/reward ratio
For the second one, the take profit will be $341.07 (assuming wave c = 1.618 x wave a), which give us a 1:5.4 risk/reward ratio
P.S. my analysis was done in log scale
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