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GTStockmaster
Dec 31, 2020 4:51 PM

TSLA - Bubble Pattern Analysis 

Tesla, Inc.NASDAQ

Description

Note: This is just information to compare **potential** bubble formation of TSLA vs. the chart patterns of other historic Bubbles.

Of note, a classic bubble pattern follows as this:

Phase 1: Trending breakout of basing formation in a strong up-trending move
Phase 2: Trending high-volatility drawdown (usually not related to stock or index itself).
Phase 3: Trending recovery - stock or index shrugs off the high volatility event as it recovers quickly and stronger than before.
Phase 4: Upwards & & sideways non-trending consolidation. Typically choppy trading, but slightly upward move.
Phase 5: 3 Phase blowoff top - breakout of non-trending consolidation followed by a smaller upwards consolidation into final blowoff breakout top.

Note: The 5 phases above are fairly consistent across market bubbles in both indexes and assets. They're not present in the formation of every bubble, but they are nevertheless highly prevalent. One item to note is that the duration and distance of each phase can be different, but the patterns remain quite similar. This is worth noting from the perspective of trying to time a breakout on any given pattern ahead of time. You can't just follow simple analogs since the pattern can easily be of a different time or velocity.

Links to other similar bubble patterns:




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