This was my trading plan on Friday for TSLA. As we can see on TSLA daily chart, on Thursday, TSLA closed up and gave a kinda hummar Doji on daily but extended on 8&21 EMAs. Thursday low was $169.06, higher than prior piovt low which was $166.19 (Nov 22rd). Therefore, my plan was "assuming" TSLA might do price correction instead of time correction on the daily chart. Therefore, if TSLA breaks Thursday's high (which was $175.20),then I will participate in this trade and use Thursday's low $166.18 (1 cent below the low) as my stop loss. And my potential or estimated target is TSLA trade back to 8&21 EMA equulibruim area (which was somewhere around $180), just do simple calculations you gonna know the risk&rewards ratio about this trade is very attractive. However, is there are any way I can kinda "cheat" the hammer Doji on daily chart?
As I mentioned before, I tried to "cheat" the hammer doji on daily. Therefore, I don't wanna wait price go up break Thursday's high and get in this trade, that's too much risk and I wanna take more shares. So, looking through the 15 mins chart, we can see that Thursday's low was right above weekly support, therefore, the downside room was kinda limited. And the 8&21 EMA area was kinda above 15 mins resistance, therefore, my plan "changed" a little bit.
1. If TSLA opens higher than Thursday's close, I'll wait for market open 5 mins, see if it holds, if holds I'll use $170ish as stop loss, and get in this trade.
2. If TSLA opens lower than Thursday's close, if lower than Thursday's close but above $170, I'll buy in at the market open, if lower than $170 but above Thursday's low, I'll wait for the market to open 5 min to see if it holds Thursday' low
3. If TSLA opens around Thursday's close, get in at the market open.
4. If TSLA opens way above ($180ish) or way below ($168ish) , drop the plan!
TSLA opens around Thursday's close, as I wrote in my trading plan, I use market order to get in this trade immediately with avg.cost 173.5ish, stop loss $171.35, after TSLA break up $174.5 the prior 5 mins high, I added more shares use stop $173.05. Completed 1st 1 to 1 kick somewhere around $176.5 and completed another 1 to 1 kick around $178.8. All orders Stop loss rose to $173.05. $181 was my target selling, and kept rising my stop loss to $180.17, sell all added shares after the price dropped below $180.17, as I circled.
Just sharing my way of trading gap or extension, hope it helps!
Please feel free to express your ideas and thoughts in the comment section.