TSLA TRENDING HIGHER / ACTION-REACTION LINES

Wait 5 sec.

TSLA TRENDING HIGHER / ACTION-REACTION LINESTesla, Inc.BATS:TSLAPrinciplesofmathprobVery old school method created by Alan Andrews to anticipate the end of a reaction that is opposed to the previous action. In this case the action was a cycle of buying and the opposite reaction a pullback to the downside. What I did was draw a simple trend line and only after did I notice it cut perfectly through the middle of all the price action, so I thought it could work as a Center Line.Then I placed the same line at a high as an action line, measured the distance between the center line and the action line, and finally placed the same line on the opposite side, the lower side, as a reaction line. Price, as you can see, reacted perfectly to the upside. I did not anticipate this, I want to be clear, I am marking it now after the fact. But it is crystal clear that a bearish trend line has just been broken to the upside and that price is now heading toward the center line with high probability. Depending on personal preference, one can enter on the breakout or wait for a pullback. I will wait for a pullback, either to the recently broken bearish line or to the reaction line, which would be my ideal entry, with a stop below the recently created prior low.