LETS LEARN ELLIOT WAVE AND FIBONACCI LEVELS BTC CRASH TO 57.6K!!
Diupdate
Alright everyone today i want to introduce Elliot Wave and Fibonacci Extension and Retracement Levels. I will upload another learning session on Smart Money Concepts and Channels and how to apply them to the Elliot Waves. Since trading is mostly done by algorithms these days it is making it easier and easier to predict the market if you can figure out what the algos are doing. Bitcoin loves to follow elliot wave and fib to a T (most securities, commodities etc do).
Lets start with some tools to help us. 1. I like to use the LuxAlgo Elliot Wave indicator and adjust the settings for the time frame to show the correct waves and I will then confirm or reject what it is showing and calculate my own but its pretty spot on.
The next indicator is called "any problems with elliot waves? heres my secret to count the ew!" by NXT2017. it is really good at helping to verify the wave count. I have labeled this indicator in the bottom of the chart with the corresponding waves.
Elliot wave can get very complex so ill just touch on the fundamental rules here and you can run further with the research if it vibes with you. Also the higher the time frame the more accurate the analysis as lower time frame waves are always morphing into something else .
Starting on the Daily TF: Waves 1-3-5 are impulse waves consisting of 5 waves per each wave (wave 1 is made of 5 waves, wave 3 is made of 5 waves same w 5) they are the strong moon beam candles. if you can find those you can find your trend. Waves 2-4 are corrective and will be 3 waves.
after your 5 waves up there will be a 3 wave correction that is an ABC correction. A consists of 5 waves B consists of 3 waves and C consists of 5 waves. If you are counting 5 waves in a down direction chances are youre in a downtrend and prob a channel too which can help with targets but more on that later.
here are the basic things to remember when charting Elliot Wave:
1. Wave 2 never retraces more than 100% of wave 1.
2. Wave 3 cannot be the shortest of the three impulse waves, namely waves 1, 3, and 5.
3. Wave 4 does not overlap with the price territory of wave 1
for bitcoin: wave 2 is usually 95-99% of wave 1 sometimes you will get a shallow correction at 0.382 tho. Wave 3 is usually extended and usually hits the 1.618 extension if you measure wave 1 and measure from the bottom of wave 2. Wave 4 is usually a combo correction consisting of 3-3-3 or 3-3-5 and usually has a 0.382-0.5 extension if you measure the start of wave 3 to the top of wave 3. Sometimes if wave 2 was shallow wave 4 will retrace 0.618. Wave 5 is usually the inverse 0.382 or 0.236 if you measure from wave 4 low to wave 4 high. It can also be the length of wave 1 measured from wave 4 high and with bitty its usually the 1.236 extension.
Then we have the corrective waves abc. Wave a is going to retrace to 0.618 most of the time sometimes only 0.5 or 0.382. wave b usually always always always goes and knocks out the 0.786 extension and goes a lil above it to grab the stop and take profits ppl have placed there.
Wave C then will be the length of wave A measured from the top of wave C and the target is usually 1.1 extension or the 1.236 most commonly for bitty.
This website does a deeper dive into elliot wave theories and is pretty good if you are interested it is: elitecurrensea.com/education/elliott-wave-patterns-fibonacci-relationships-core-reference-guide/
If you have any questions just PM me on here (TradingView: Member_Berry)
Lets start with some tools to help us. 1. I like to use the LuxAlgo Elliot Wave indicator and adjust the settings for the time frame to show the correct waves and I will then confirm or reject what it is showing and calculate my own but its pretty spot on.
The next indicator is called "any problems with elliot waves? heres my secret to count the ew!" by NXT2017. it is really good at helping to verify the wave count. I have labeled this indicator in the bottom of the chart with the corresponding waves.
Elliot wave can get very complex so ill just touch on the fundamental rules here and you can run further with the research if it vibes with you. Also the higher the time frame the more accurate the analysis as lower time frame waves are always morphing into something else .
Starting on the Daily TF: Waves 1-3-5 are impulse waves consisting of 5 waves per each wave (wave 1 is made of 5 waves, wave 3 is made of 5 waves same w 5) they are the strong moon beam candles. if you can find those you can find your trend. Waves 2-4 are corrective and will be 3 waves.
after your 5 waves up there will be a 3 wave correction that is an ABC correction. A consists of 5 waves B consists of 3 waves and C consists of 5 waves. If you are counting 5 waves in a down direction chances are youre in a downtrend and prob a channel too which can help with targets but more on that later.
here are the basic things to remember when charting Elliot Wave:
1. Wave 2 never retraces more than 100% of wave 1.
2. Wave 3 cannot be the shortest of the three impulse waves, namely waves 1, 3, and 5.
3. Wave 4 does not overlap with the price territory of wave 1
for bitcoin: wave 2 is usually 95-99% of wave 1 sometimes you will get a shallow correction at 0.382 tho. Wave 3 is usually extended and usually hits the 1.618 extension if you measure wave 1 and measure from the bottom of wave 2. Wave 4 is usually a combo correction consisting of 3-3-3 or 3-3-5 and usually has a 0.382-0.5 extension if you measure the start of wave 3 to the top of wave 3. Sometimes if wave 2 was shallow wave 4 will retrace 0.618. Wave 5 is usually the inverse 0.382 or 0.236 if you measure from wave 4 low to wave 4 high. It can also be the length of wave 1 measured from wave 4 high and with bitty its usually the 1.236 extension.
Then we have the corrective waves abc. Wave a is going to retrace to 0.618 most of the time sometimes only 0.5 or 0.382. wave b usually always always always goes and knocks out the 0.786 extension and goes a lil above it to grab the stop and take profits ppl have placed there.
Wave C then will be the length of wave A measured from the top of wave C and the target is usually 1.1 extension or the 1.236 most commonly for bitty.
This website does a deeper dive into elliot wave theories and is pretty good if you are interested it is: elitecurrensea.com/education/elliott-wave-patterns-fibonacci-relationships-core-reference-guide/
If you have any questions just PM me on here (TradingView: Member_Berry)
Catatan
57.6k hit lets see if we get bounce here i think we will still break down to the bottom of the trend channel wherever that may be prob around 54.8kTrading ditutup: target tercapai
I ended up moving the TP to 53777.77 and it hit. Trade closed with 601% profit
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