In the video above, I break down a real-time trade on Tesla, highlighting key strategies like trend analysis, gap support, stop-loss hunting, and the 10X Trading System signals. 

This guide expands on those concepts, giving you a step-by-step guide to identifying similar setups and trading them with confidence.

Whether you’re a beginner or an experienced trader, understanding these techniques can sharpen your edge in the market. Let’s dive into the details and see how you can apply them to your own trading.

Every great trade begins with understanding the bigger picture. In the video, I emphasize “looking left” on the chart to confirm the overall trend. For Tesla, the stock was clearly in an uptrend, making higher highs and higher lows.

- Trading with the trend increases your odds of success.

- In an uptrend, pullbacks often present buying opportunities.

Pro Tip: Always ask yourself, “Is the market trending or ranging?” before entering a trade. This simple step can save you from fighting against the market’s momentum.

One of the key levels I identified was gap support. A gap occurs when a stock opens significantly higher or lower than its previous close, leaving a blank space on the chart. In this case, Tesla had a gap that acted as a support level during the pullback.

- Gaps often attract attention, making them reliable areas for potential reversals.

- Gap support gave us added confidence that the pullback was likely to reverse.

- It’s a high-probability zone for entering long positions in an uptrend.

During the pullback, I spotted a sharp drop with increased volatility—a classic sign of stop-loss hunting. This is when the market briefly dips below a key level to trigger stop-loss orders before reversing.

- Look for a sudden spike in volume and volatility and a quick recovery.

- In the video, this dip was followed by the 10X Buy Signal, confirming the reversal.

- Stop-loss hunting shakes out weak hands, creating a prime entry point for savvy traders.

- Paired with a 10X Trading System buy signal, it’s a powerful confirmation of a trend continuation.

Pro Tip: Watch for these volatility spikes near key levels—they often signal that the market is ready to reverse.

The 10X Trading System is a buy and sell TradingView indicator designed to highlight high-probability reversal points. In this trade, it fired right after the stop-loss hunting, giving us the green light to enter.

- It’s a proprietary signal that combines price action, trend, and key level strategies.

- Think of it as a “go” sign when multiple factors align for a trade.

- It reduces guesswork by confirming that the setup meets strict criteria.

- In this Tesla trade, it aligned perfectly with the trend, gap support, and stop-loss hunting.

Quick Note: While the exact formula is proprietary, you can create your own checklist of confluence factors—like trend, support, and momentum—to confirm your entries.

After entering the trade, I saw a sell signal, but instead of closing the entire position, I took partial profits and held half for a potential breakout to new highs.

- It locks in gains while letting the rest ride in case the trend continues.

- This approach balances risk and reward, especially in strong trends.

- Set a target for partial profits (e.g., at resistance or a sell signal).

- Hold the remaining position for a breakout, but stay alert for signs of exhaustion.

Pro Tip: Use trailing stops or key levels to protect your remaining position as the trade moves in your favor.

In the video, I mention holding for a breakout to higher highs, then looking for a volatility spike or a failed gap up to close the rest of the position.

- A breakout occurs when price moves above a key resistance level, signaling potential continuation.

- In this case, I'm watching for Tesla to push beyond recent highs.

- A sharp volatility increase (like a gap up) that fails to hold.

- A 10X Sell Signal after a strong move, indicating potential exhaustion.

- Trade with the Trend: Always check if the market is trending or ranging.

- Use Confluence: Combine signals like gap support, stop-loss hunting, and indicators for higher-probability setups.

- Manage Risk: Take partial profits and adjust your stops to protect gains.

- Stay Patient: Wait for breakouts or clear exit signals before closing your position.

By applying these strategies, you can trade with more confidence and precision, just like I did in this Tesla setup.

Trading isn’t about catching every move—it’s about finding high-probability setups and managing them smartly. In this Tesla trade, I combined trend analysis, gap support, stop-loss hunting, and the 10X signal to find a high-probability entry resulting in a winning strategy. If you use these rules in your own trading, you’ll be well on your way to mastering the markets.

Happy trading!