So here we have a clear look into the 5 completed waves in BTC, each impulse and correction divided and finally we've got a projection of a possibly A.B.C correction. Those arrow were traced (following fibonacci ratios) as a 5-3-5 Zig Zag because it's the basic pattern, however we can expect another type of retracement.
I took the main guidelines of EW (fibonacci ratios) and rules in order to make a correct count, i also used the Awesome Oscillator to identify the waves and match them. EW theory main principle are fractals and i'll show you what i see.
RSI is showing 2 divergences (red lines) against the trend price between wave 3 and wave 5 of each wave of higher degree after we have an A.B.C correction retracing a 60% of the wave. Now we have another divergence in the same waves, (in wave 5 higher degree) so based in history we can expect a correction of 60% ending in $3,600 USD (78.6% fibonacci) however this price expected is based on statistics not in EW Theory. So after i took the whole impulse Wave 1-5 in parethesis as a whole wave (remember fractals) and use fibonacci retracement. Usually wave 2 extends to 61.8% of wave 1, according to EW.T this wave 2 ends around $2,600 USD, pretty close of our first target $2,500 - 3,000 USD. And if we took this big ass wave 1 we can see a clear divergence (black line) against RSI.
Finally i add some triggers that may end and begin the A.B.C correction.
Patience pays more than quick trades
Hope you've got the idea.
I took the main guidelines of EW (fibonacci ratios) and rules in order to make a correct count, i also used the Awesome Oscillator to identify the waves and match them. EW theory main principle are fractals and i'll show you what i see.
RSI is showing 2 divergences (red lines) against the trend price between wave 3 and wave 5 of each wave of higher degree after we have an A.B.C correction retracing a 60% of the wave. Now we have another divergence in the same waves, (in wave 5 higher degree) so based in history we can expect a correction of 60% ending in $3,600 USD (78.6% fibonacci) however this price expected is based on statistics not in EW Theory. So after i took the whole impulse Wave 1-5 in parethesis as a whole wave (remember fractals) and use fibonacci retracement. Usually wave 2 extends to 61.8% of wave 1, according to EW.T this wave 2 ends around $2,600 USD, pretty close of our first target $2,500 - 3,000 USD. And if we took this big ass wave 1 we can see a clear divergence (black line) against RSI.
Finally i add some triggers that may end and begin the A.B.C correction.
Patience pays more than quick trades
Hope you've got the idea.