re: Investing In Tesla

Good call, rocket!

You mean your aren't suppose to buy high?!?!

WTF

Tesla back up to $308 with nearly a 13 point jump today...

I'm an idiot for not buying at $291 a few days ago.

Tesla is my new favorite roller coaster

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you guys don't buy that technical bull shite do y'all?

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Drawn support and resistance lines? No. Though I do occasionally recognize certain price levels as being support and resistance due to human psychology. 2400 for the S&P 500, for example.

Some other forms of technical analysis? Yes. The technicals I look at are based on statistics. For example, I look at price action for indexes and commodities with Bollinger Bands. The bands are made up of a moving average in the middle and one upper band and one lower band, both of which are 2 standard deviations away from the moving average. As you'll recall, two standard deviations should contain about 95% of your data. I've found that when price action occurs significantly outside of those bands, that is the peak or bottom of whatever is the current trend, and the trend will (often quickly) reverse course. Many trends don't end with price action occurring significantly outside the bands, but knowing this is very powerful when it does happen because you'll have a much better idea of the bottom or top than most people.

LINK to picture demonstration for /ES, the S&P index futures. I circled significant price action outside of the bands.

It's also worth noting that, when watching time frames of months or years, indexes usually only have significant price action below the lower Bollinger band, not upper. It takes time for prices to rise, but panic and fear drop prices quickly. Years to build, days to destroy. This is a strategy useful for buying dips of indexes, not selling tops.

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Drawn support and resistance lines? No. Though I do occasionally recognize certain price levels as being support and resistance due to human psychology.

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i love support/resistance lines

my main 3 day-trading rules are simple:

1. Always buy at or near support WITH VOL
2. Always buy over the break of resistance
3. Never buy in between support and resistance (because youll be stuck in the dead zone for weeks/months not knowing where the stock wants to go)

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I've found that when price action occurs significantly outside of those bands, that is the peak or bottom of whatever is the current trend, and the trend will (often quickly) reverse course. Many trends don't end with price action occurring significantly outside the bands, but knowing this is very powerful when it does happen because you'll have a much better idea of the bottom or top than most people.

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Exactly, its merely the historical statistical numbers of the stock. As you very well know, historical performance does not predict future performance for stocks.

I think there can be a bit of self fulfilling prophecy with technicals, especially on thinly traded small cap stocks, which will have more speculative traders than institutional, that if a significant portion of the of those traders are using the same markers than they could work because lots of people are using a similar system.