Tesla, Inc. (TSLA) experienced a significant event yesterday, December 16th, as it demonstrated a Power Inflow at a price of $445.52. This indicator is crucial for traders who want to know directionally where institutions and so-called “smart money” moves in the market.
What is a Power Inflow?
A Power Inflow occurs within the first two hours of the market open and generally signals the trend that helps gauge the stock’s overall direction, powered by institutional activity in the stock, for the remainder of the day. This particular indicator is interpreted by active traders as a bullish signal.
How Does it Work?
Order flow analytics, also known as transaction or market flow analysis, separate and study both the retail and institutional volume rate of orders (flow). It involves analyzing the flow of buy and sell orders, along with size, timing, and other associated characteristics and patterns, to gain insights and make more informed trading decisions.
What Does this Mean for Traders?
By incorporating order flow analytics into their trading strategies, market participants can better interpret market conditions, identify trading opportunities, and potentially improve their trading performance. However, it is crucial to incorporate effective risk management strategies to protect capital and mitigate potential losses.
Trading Performance
The returns on the High price ($462) and Close price ($462) after the Power Inflow were respectively 3.7% and 3.7%. This highlights the importance of having a trading plan that includes Profit Targets and Stop Losses that reflect your risk appetite.
Disclaimer
Past performance is not indicative of future results. Traders should always keep this in mind and exercise caution when making investment decisions.
TSLA Stock Performance
- Close price: $462
- High price: $462
- Price at Power Inflow: $445.52
- Return on Close price: 3.7%
- Return on High price: 3.7%