traderhr
- Thread starter traderhr
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TSLA is approaching a critical breakout point at 235+. The recommended trading strategy includes exiting 25% at T1 (245) with the stop loss moved to breakeven, exiting 50% at T2 (255) with the stop loss moved to T1, and exiting the remaining 25% at T3 (260). The stop loss is initially set at 220 to limit potential downside. It is important to monitor the volume closely for confirmation of a breakout above 235+, as increased volume could signify a stronger breakout move.
I like that you have laid out a specific strategy for trading.TSLA is approaching a critical breakout point at 235+. The recommended trading strategy includes exiting 25% at T1 (245) with the stop loss moved to breakeven, exiting 50% at T2 (255) with the stop loss moved to T1, and exiting the remaining 25% at T3 (260). The stop loss is initially set at 220 to limit potential downside. It is important to monitor the volume closely for confirmation of a breakout above 235+, as increased volume could signify a stronger breakout move.
Yes here is how strategy works
Trading Strategy with Multiple Exit Levels:
T1: EXIT 25%, STOP LOSS TO BREAKEVEN
T2: EXIT 50%, STOP LOSS TO T1.
T3: EXIT 25%
What is the rationalization behind the strategy?Yes here is how strategy works
Trading Strategy with Multiple Exit Levels:
T1: EXIT 25%, STOP LOSS TO BREAKEVEN
T2: EXIT 50%, STOP LOSS TO T1.
T3: EXIT 25%
Why 25% then 50% then 25?
Why not a trailing stop?
Let the winners run!!
That's just one solution. Sure, you can adjust your exit distribution, but I think it's still crucial to take 20-25% off after the initial wave and adjust the stop to breakeven. After that, you can either use a trailing stop or exit after the 'second up wave,' etc. The main point is to distribute exits and think statistically, as not all breakouts will be successful. By taking partial profits after the initial wave and adjusting the stop loss to breakeven, you're protecting your position from an eventual trade reversal
STKL is nearing a resistance zone after a steady uptrend. The recent price action shows strength with higher lows, suggesting bullish momentum. A breakout above the current resistance level could lead to further upside, especially if supported by increasing volume. Watching how the price behaves around this key level will be crucial for trade confirmation.
