TSLA: Some simple strategies you can use.
Hello traders and investors! Let’s do a complete Multi Time Frame Analysis (MTFA) on TSLA today! Let’s see how it is behaving and discuss some strategies for it.
Tesla is in a strong bull trend, and there are a few things that we can do here. First, the hourly chart is suggesting a pullback to the 21 ema, which is a perfectly natural movement. Every time TSLA gets near the 21 ema is just opportunity to buy.
Also, I won’t consider the stock split such a big deal for the charts, the splits are usually good and Tesla is already in a phenomenal bull trend. It's like paddling with a strong wind in your favor.
But what is most important is that Tesla finally did an Exhaustion gap, which we have been waiting since Aug 12, I believe. This is important because, historically speaking, Tesla has been doing the same pattern: Runaway gap + Common gap + Exhaustion gap.
The last gap is usually filled in a few days, but Tesla never filled its previous runaways and commons gaps, as you can see in the daily chart:
Every time, after an accumulation, Tesla does the 3 gaps pattern. This was the 3rd time. Therefore, don’t panic if you see a pullback or a sideways movement ahead. If history repeats itself, the chart suggests a correction, and this is ok. This is what Tesla has been doing, and this would be just opportunity for those who didn’t buy the stock yet.
So, if you are out, just wait for a pullback/correction for the best Risk/Reward trade possible.
Now, the weekly chart:
Yes, Tesla is at its ATH, which is great. But now is not the time to long it, neither to short. It’s time to manage your positions properly and ask yourself, what do you expect from Tesla?
If you are planning to hold it, then you have absolutely nothing to worry. If you are trading it and are long right now, there’re some exit strategies you can use.
Right now, since Tesla did its Exhaustion gap, I would set a trailing stop at it, and I like to use the daily chart for this strategy: If Tesla closes under the previous candlestick's low, then book your profits.
Also, you can just wait for a bearish pivot in the hourly chart to book your profits. And since Tesla is too far from the green line at 1794 (daily chart), I won’t use it anymore as stop point, like we did on my last analysis.
I believe these two strategies are the best right now, and I hope it helped you. If this is the case, please, support this idea! And I invite you to follow me for more analyzes like this one. Every day, I'm here to share a few thoughts with you.
Recent public trades (links below):
XP: + 30%
AAPL: + 10%
LB: + 45%
UKOIL: + 62%
Congratulations to all of you, my dear subs, who believed in my trading methodology, and challenged the world by being a bull! We deserve to celebrate! [/ b]
BECOME A MEMBER!
Remember to follow me [/ b], I'm a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). [B] Like [/ b] this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
Tesla is in a strong bull trend, and there are a few things that we can do here. First, the hourly chart is suggesting a pullback to the 21 ema, which is a perfectly natural movement. Every time TSLA gets near the 21 ema is just opportunity to buy.
Also, I won’t consider the stock split such a big deal for the charts, the splits are usually good and Tesla is already in a phenomenal bull trend. It's like paddling with a strong wind in your favor.
But what is most important is that Tesla finally did an Exhaustion gap, which we have been waiting since Aug 12, I believe. This is important because, historically speaking, Tesla has been doing the same pattern: Runaway gap + Common gap + Exhaustion gap.
The last gap is usually filled in a few days, but Tesla never filled its previous runaways and commons gaps, as you can see in the daily chart:
Every time, after an accumulation, Tesla does the 3 gaps pattern. This was the 3rd time. Therefore, don’t panic if you see a pullback or a sideways movement ahead. If history repeats itself, the chart suggests a correction, and this is ok. This is what Tesla has been doing, and this would be just opportunity for those who didn’t buy the stock yet.
So, if you are out, just wait for a pullback/correction for the best Risk/Reward trade possible.
Now, the weekly chart:
Yes, Tesla is at its ATH, which is great. But now is not the time to long it, neither to short. It’s time to manage your positions properly and ask yourself, what do you expect from Tesla?
If you are planning to hold it, then you have absolutely nothing to worry. If you are trading it and are long right now, there’re some exit strategies you can use.
Right now, since Tesla did its Exhaustion gap, I would set a trailing stop at it, and I like to use the daily chart for this strategy: If Tesla closes under the previous candlestick's low, then book your profits.
Also, you can just wait for a bearish pivot in the hourly chart to book your profits. And since Tesla is too far from the green line at 1794 (daily chart), I won’t use it anymore as stop point, like we did on my last analysis.
I believe these two strategies are the best right now, and I hope it helped you. If this is the case, please, support this idea! And I invite you to follow me for more analyzes like this one. Every day, I'm here to share a few thoughts with you.
Recent public trades (links below):
XP: + 30%
AAPL: + 10%
LB: + 45%
UKOIL: + 62%
Congratulations to all of you, my dear subs, who believed in my trading methodology, and challenged the world by being a bull! We deserve to celebrate! [/ b]
BECOME A MEMBER!
Remember to follow me [/ b], I'm a trader who uses the classic technical analysis (barely any indicator, just the candles and the volume). [B] Like [/ b] this idea if it helped.
Thank you very much.
* LIKE this idea and FOLLOW me, because:
- Here, you will see clean charts;
- Trades with clear risk management;
- The best of Dow Theory, Price Action and Candlestick psychology;
- Chart patterns with statistics. *
* My name is Nathan, I'm a trader and portfolio manager and I'm here to LEARN. Leave your COMMENT and FOLLOW me to keep in touch. *
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