TSLA Bearish Gartley with entry on intraday
I want to be a seller of TSLA at 274$ because:
- D point of ABCD pattern completion in the Daily is at 266$
- D point of ABCD pattern completion in the 10-min from previous day's low shows a sell signal if the stock trades at 271$. However, I acknowledge the steep bull trend the stock is at, therefore I am going to put the entry at the 1.27 extension of this ABCD pattern which is 274$.
- That area is at the 0.78 retracement from the previous high of the big ABCD pattern in the big picture which has to be taken into account considering that this ABCD might become a bearish Gartley pattern in the bigger picture.
- I am going to use a 6$ stop placed at 280$. WHY 280? Because I consider that if we trade beyond that level, the patter is no longer valid.
- D point of ABCD pattern completion in the Daily is at 266$
- D point of ABCD pattern completion in the 10-min from previous day's low shows a sell signal if the stock trades at 271$. However, I acknowledge the steep bull trend the stock is at, therefore I am going to put the entry at the 1.27 extension of this ABCD pattern which is 274$.
- That area is at the 0.78 retracement from the previous high of the big ABCD pattern in the big picture which has to be taken into account considering that this ABCD might become a bearish Gartley pattern in the bigger picture.
- I am going to use a 6$ stop placed at 280$. WHY 280? Because I consider that if we trade beyond that level, the patter is no longer valid.
Trade active
I have been filled right into the close.Note
I am moving my stop to 278$ to minimize risk, specially after that decline in the open.If more sellers are coming in, I suppose that we should not see 278$
Note
I am moving my stop to breakeven (274$).I have to admit that I didn't expect such decline from the open and now I'm keen on taking profits BUT THE PLAN IS THE PLAN.
The structure in the Daily suggests to me that the pattern is working. Usually this pattern offers more downside when it works, therefore, I'm going to risk this quick profit in order to find out wheather the pattern works or doesn't.
Note
I am inputing an order to add to my short at 266$.The reason for this is that looking at the bigger picture rather than the intraday, there should be more downside (240$ or even lower), therfore we need to be short with the biggest size possible minimizing our risk.
If I get filled, my average position will be 270$ and I'll put the stop to 270.5$ risking 1$ at most.
I argue here that if we see 270$, the selling pressure that we witnessed has been bought up again, invalidating the pattern that usually works immediately. If not, we should stay short and hope for the best.
Note
I am adding to my short position at 250$. My stop is at break even at my average entry price which is 262$. It is the 0.382 retracement from the newest high and 0.23 from the swing high. I might add again if we get to 255$, as it's the 0.382 of the swing high (moving my stop to 260$). Trade closed: stop reached
I have been stopped out at 262$ on bothThe pullback has been deeper than I expected.
I'll wait for more price action and reconsider this idea shortly.
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