Quote Originally Posted by barbados11 View Post
Mike,

Thank you very much for this explanation. I too got shaken out the day of the downgrade. I looked at the models in the chart school model book and found no example of a HTF that crashed through the proper pivot and worked. The next day I was conflicted. I saw the power of it but got it stuck in my head that it could not be a HTF and made a huge mistake thinking it would give me another opportunity. I missed it and regret it since I had built a large position. Last Friday I began to think differently. Would you mind sharing how you were confident that it was a HTF or did you mostly rely on the up 20% in 3 weeks or less and forgot about labels? I'm trying to avoid making a similar mistake in the future.

Pablo
Pablo,

I am using TASR as my high-tight flag model for TSLA. Please see the attached powerpoint file that shows each stock on daily charts. Both meet the flagpole requirement of up 100% or more in 8 weeks or less. Both push the flag pullback a bit by exceeding the 20% pull back requirement. I have seen many work with up to 29% pullbacks. Both established a lower entry point than making a new high by establishing a lower resistance point. Both pulled back below the buy point and then went on to make new highs. So I believe that TSLA is falling within the parameters of prior successful high-tight flags. JDSU in December 1999 was a HTF that also shows the concept of establishing a lower entry point than the highest high.

TASER TESLA HTF.pptx