Oct 22, 2021 09:34

Playbook: TSLA 10-21-22

Name: Symmetrical Triangle after Great Earnings

Big Picture:
What does the related and broader market look like?
It's starting to look really toppy and we are sitting right under ATH. Very interesting day to be looking at longs but the market looked primed for a dip buy at the open.

What were important levels intraday in the SPY/QQQ?
454.54 was previous ATH
452.74 was important from it being two swing highs from the week.
451 is where spy held.

What is /ZB doing? Chart below:
Bonds were chopping at open but ran to the bull side and got slammed down from the previous demand zone on the open. Looks like shorts are good for monday.

Where there any important events on the macro level?
Earning season nest week with big tech names.

SPY/QQQ/Bonds market chart here:

Intraday Fundamentals:
Premarket Volume (for plays off the open)?
What is the ATR?
How does the option market look?

What makes the stock in play?

 The market can not put a ceiling on earnings
And TSLA crushed earnings.

Also a 2nd day after earnings trade.

What levels were significant in the trade?
VWAP 897

Did you trade based off a candlestick pattern?
Symmetrical Triangle

What levels/TA did you used to plan your entry? Why?
I used the VWAP to get an entry and I should have built a position into the VWAP/trendline of the pattern but instead I got stopped out and traded it live on Tastyworks because I liked the VWAP bounce set up on top of the pattern.

What was price action telling you?
This think could really move if it breaks up or down.

How and where did TA give you the biggest edge?
I got an early entry off VWAP but I sold out of it and then made a poor entry with no TA to back me up.

Where did your TA fail you?
I failed the TA.

Detailed TA Chart with any further explanation:

Reading the tape:
What did you see on the tape to initiate your entry?
I could tell that buyers wanted this thing under 900 bad so every dip under 900 built up more buyers.

What did you see on the tape to take profits early if you did?
Hard rejection at 105

What made you add size?
On the VWAP hold inside the pattern.

Why did you sell?
Well I wanted to go trade this live is really what it was.

Intuition/Trade review:

What intuitive lessons can you take from this trade?
I absolutely knew this think would move over 900 at some point.

How did this trade help you grow?
I learned how to buy the bottom of the pattern to better limit my risk. Works so much better than buying breakouts.
How are you going to take what you learned and apply it tomorrow?
I am going to continue to work on buying the bottom or if vwap is holding in a pattern thats a great signal.
How can you get better entries and exits?
Where can you be bigger in this trade next time?

Execution detail:

Date/time Symbol Side Price Position
2021-10-22 09:34:45 22 OCT 21 920 CALL buy $2.070 long
2021-10-22 09:35:56 22 OCT 21 920 CALL sell $2.570 long
2021-10-22 09:37:19 22 OCT 21 920 CALL sell $2.570 0
2021-10-22 09:41:01 22 OCT 21 920 CALL buy $2.000 long
2021-10-22 09:41:03 22 OCT 21 920 CALL buy $2.000 long
2021-10-22 09:41:18 22 OCT 21 920 CALL sell $2.000 long
2021-10-22 09:46:57 22 OCT 21 920 CALL sell $1.830 0

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