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mazdaki
Nov 2, 2017 12:20 AM

TSLA - BEARISH BUTTERFLY - HEAD AND SHOULDER BREAK Short

Tesla, Inc.NASDAQ

Description

lots of uncertainty.... lots of downgrades coming...IT'S NOT TO MAKE LOTS OF CARS.... IT IS EASIER TO SELL A CONCEPT AND DREAM THEN MAKING A TANGIBLE PRODUCT!
Comments
mazdaki
BTW, 61.8% of all time high is also 240!
mazdaki
So profit targets are $240 and $130... Not late to short...


From ProfitF:
The main rules of the Bullish and Bearish Butterfly patterns are as follows:

Butterfly Rules

AB can retrace up to 78.6% of the XA leg
BC can retrace between 38.2% – 88.6% of AB
CD can be an extension of 1.618% – 2.618% of AB
CD can also be an extension of up to 1.272% – 1.618% of XA leg
The point D is known as the PRZ or Potential Reversal Zone
From Point D, a trade can be entered with stops at or above (below) the price point at D.

Butterfly Target Levels

Once a position is entered at D, profits can be booked at 61.8% of CD with the second target at 127.2%. Despite the above rules, in real time such text book patterns that qualify every point of the swing legs do not form as expected, so traders should be a bit flexible while identifying the butterfly patterns.
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