Today we will share all the key levels on TSLA; this post may be relevant for position / Swing Traders.
What are the most relevant technical structures we can see?
1)Ascending Trendline (white line)
2) Support / Resistance Zone (orange rectangle)
3) Descending trendline (yellow line)
With those 3 levels, we can create a map of possible scenarios of price movement. Now, let's understand what is the Non trading area and the trading area.
Non-Trading Area:
This is a zone in which we don't have confirmation of a new bullish movement. This is defined by the yellow descending trendline. IF the price stays below the yellow line we should assume that the current trend still bearish and we should not develop long setups. Why? Because trendlines are great at telling us the most external edges of a Bearish or bullish situation.
Trading Area:
The trading area for Position / Swing Traders is above the yellow line. If we have clear confirmation of the broken trendline like Daily candlestick above it / or the one we use the most, price breaking "B" (883.50). We can consider that a new possible bullish trend has started, the targets, in that case, would be 1054 and 1253 (we are using Fibo extensions to define that. (if you want to learn how to use fibo extensions check the link to related ideas, you will find it there + other TSLA posts))
REMEMBER: Every trade you take is another trader, which means that you can either have a stop loss or a take profit despite having all the certainty in the world. Pay attention to the next 100 trades and find your edge on Statistic. Thanks for reading!
What are the most relevant technical structures we can see?
1)Ascending Trendline (white line)
2) Support / Resistance Zone (orange rectangle)
3) Descending trendline (yellow line)
With those 3 levels, we can create a map of possible scenarios of price movement. Now, let's understand what is the Non trading area and the trading area.
Non-Trading Area:
This is a zone in which we don't have confirmation of a new bullish movement. This is defined by the yellow descending trendline. IF the price stays below the yellow line we should assume that the current trend still bearish and we should not develop long setups. Why? Because trendlines are great at telling us the most external edges of a Bearish or bullish situation.
Trading Area:
The trading area for Position / Swing Traders is above the yellow line. If we have clear confirmation of the broken trendline like Daily candlestick above it / or the one we use the most, price breaking "B" (883.50). We can consider that a new possible bullish trend has started, the targets, in that case, would be 1054 and 1253 (we are using Fibo extensions to define that. (if you want to learn how to use fibo extensions check the link to related ideas, you will find it there + other TSLA posts))
REMEMBER: Every trade you take is another trader, which means that you can either have a stop loss or a take profit despite having all the certainty in the world. Pay attention to the next 100 trades and find your edge on Statistic. Thanks for reading!
