Another clear corrective structure on TSLA

Today, we will speak about the current structure we can see on TSLA.

-Corrective Patterns tell us about the accumulation and distribution process. That creates sideways movements which form this Zig-Zag / Triangles / Irregular patterns

-Breakout trading is about waiting for the breakout of a formation. We consider that the accumulation and distribution process is finished when a candlestick breaks above a key level (like the entry zones we have). Once that happens, we set our stop loss below the previous structure, which represents a demand level

-The idea with this type of setup is to look for Risk/Reward ratios above 1.5

-In general terms, we can say that the Win rate of this type of structures is about 50% / Remember that the key here is the risk-reward ratio

-Conclusion: This is a setup we will take, using 1% of the capital (RISK MANAGEMENT IS KEY). Entry / Stop / Take Profit are the ones you see in the chart. We will use the first fibo extension for break-even

Thanks for reading!