TESLA 4HR Large Symmetrical Triangle

Oct 10, 2020

Currently TESLA stock seems to have formed a nice symmetrical triangle.

Now , we still dont know direction yet but based on our TP calculations, we know were looking at a 20-30% move if this pattern plays out (~20% up, or ~30% down).
With that said we can get a basic trading plan outlined.

We have had a lot of upside movement lately so I will be expecting it to be a continuance pattern and break upwards, but not enough to risk my capital until confirmed ;)

TP Calculation :
Target = 159.91 / chance of reaching target 0.58 = 92.74$

IF we break upwards:
TP: ~92$ from break point or ~20%
SL: Last swing low, currently around 350$ (making a pretty bad R/R of ~1/1)

IF we break downside:
TP: ~92$ from break point or ~30%
SL: Last swing high, currently around 450$ ( making approximately 2:1 reward:risk)

In either case, please wait untill a fully closed break of the triangle happens ( higher risk), or even better until one full bar closes outside the triangle AFTER the break (lower risk, less reward).

Link for pattern info : thepatternsite.com/st.html

Oct 10, 2020

Note

Correction, the approximate percentage for TP for a the short scenario is actually ~23% not 30%

Oct 15, 2020

Note

Upside break at ~444.50
TP: 536
SL: ~402

Oct 23, 2020

Trade closed manually

This is looking like a "fakeout" rather then breakout. I will be closing my long here at a small loss