Diagonal trianglesThings that do not follow Elliott's basic rules can be seen in wave 1 or A or B or C or wave 4. The difference between these models is in the type of microwaves, which are multi-wave.
Elliotwaveeducation
GBPJPY Set to Complete an Elliot Wave Zigzag PatternGBPJPY's chart above shows the corrective move that started from wave (v) high.
The sharp decline can be seen as a five-wave impulse in wave (a) which means the impending correction will most likely be a zigzag.
Price has since then moved in a sideway and seems to have completed a double three complex correction in wave (b).
To complete the zigzag pattern a five-wave impulse in wave (c) is needed and that looks to have started now.
The break of the blue line is a good level to take a short entry.
AUDUSD Is Approaching a Reversal ZoneThe structure of AUDUSD decline from Jan 2020 high has been unfolding as a textbook Elliot Wave five-wave impulse move, labeled (i)-(ii)-(iii)-(iv)-(v).
Wave (ii) was a sharp correction and wave (iv) unfolded as a triangle. A triangle always preceded the last move of a sequence.
The whole structure perfectly fits into a downtrend channel.
According to the theory, a three-wave correction follows every impulse move. If this count is correct, AUDUSD should find bottom within the blue zone that lined up with channel support and price should resume an advance in 3, 7 or 9 swing sequences.
Target above wave (iv) in red high is plausible for bulls, and the breach of the blue line will confirm the bullish setup.
What's your view on AUDUSD?
USDCHF: Ending Diagonal - Signal for ReversalEnding diagonals are motive wave patterns yet not impulses, as they have two corrective characteristics (wave 4 must always enter the price territory of wave 2). ED's usually take the shape of a wedge and in all cases, they are found at the reversal points of the larger patterns, showing exhaustion of the larger movement. I usually confirm that I have an ending diagonal if I see divergence on the RSI. In many cases, an ending diagonal is usually followed by a strong impulsive move in the opposite direction of the trend.
Long Story Short (Part 2)Hello to all crypto enthusiast, we are standing in a very interesting time in the crypto sphere, I'll try to make this idea as simple as I can, even if you are not familiar. with Elliot wave theory, you can get here a nice amount of information about it.
I will start with a disclaimer, It is important to me to clarify that my analysis are not a recommendation of any kind, this is only my idea and you should do your own research!
Collecting data:
Facts -
1) our WXYXZ correction structure is over, you can see my analysis about it at ' Long Story Sort ' part1 and in the video I made ' The Similarities ETH vs BTC '.
2) An impulse wave is following a correction structure, it starts at 17.12.2018 and ends in 01.07.2019
3) our last correction is in a flat correction wave count.
Flat corrections - (regular, running, expanded)
Flat correction is made of (3,3,5) counting, correction wave are noted as ABC, the first wave (A) is made of 3 smaller degree waves, the second wave (B) is made of 3 waves as well and the third wave (C) is made of 5 smaller degree waves, that's why the (3,3,5).
Regular Flat Correction - when wave (B) doesn't cross up wave (A) top and wave (C) is equal in length to wave A, you can measure that with fib ext
Running Flat Correction - wave (B) cross up wave (A) top by 1.238% fib ext and wave (C) just above the end of wave (A)
Expanded Flat Correction - when wave (B) cross the starting point of wave (A) by 1.238-1.382 fib ext and wave (C) moving beyond the ending point of wave (A) by 1.618 and sometimes even to 2.618 of fib ext
Analysis:
I will divide my analysis into 2 frameworks, the first is the color of the rectangles and the second is the color of the wave lines.
Lines explanation-
Black line - showing us the whole move of wave 2, the intermediate degree ABC
Red line - presenting the Minor degree, which follows the one smaller degree of the intermediate and reveals the structure of each intermediate (black) wave
Blue line - under bracks the structure of the minor (Red) and reveals what it made of
Rectangles explanation-
Red - framing the first correction A
Yellow - divides the B correction to two halves, the first is about the expanded flat correction
Green - the second half of the B wave
Black line - the wave line is presenting the big picture, In my analysis, I choose to present a situation which the big move will be a regular flat correction, this desition made because the rule in EWT that says that wave number 2 will retrace 61.8% out of the first wave and as we can see for now, the bulls fight to keep those price level.
with all that been said, the prices still can go to 88.6% and the analysis will be still valid.
So if we understand that wave (A Black) is the beginning point of a regular flat and we know that in regular flat the length of wave A,B and C is approximately equal, so by measuring wave (A black) we can get to 355$ at the top of wave (B black) which eventually will lead us to the last target of wave (C black) to the same price level at the bottom of our current correction.
Red line, red rectangle - this is genesis, which leads me to the conclusion that we are in the middle of a bigger correction, as you can see, the red line in the red zone in for ABC, but if you will take a closer look at the structure it self (blue line) you will find the structure of it is (3,3,5) flat correction structure.
At the beginning of zone yellow, you will notice an uprise move to 230$ and then a crash to 160$, if the crash wasn't crossing down the support line of the uprising move we could conclude it is an impulse wave. but it crossed it down, and so it lets us understand the correction has not been finished yet.
Blue line, yellow zone -
By EWT definition of expanded flat, we can understand we are looking at one in the border between the red and the yellow zone.
Yellow line, green zone - the rest of the analysis from here is a bit hard to determine due to insufficient data, it is not a simple task to understand properly the structure of the chart when we have only the EWT guidelines, but still I drew them just to represent the sentiment it will may go.
I really hope I made it not to complex to follow and to understand, after all, it is a bit complex subject to understand and a bit complex idea, but... If you have any question regarding this or any other idea of mine, you are more than welcome to hit me up in the comments and I'll do my best to answer when it is possible ;)
sell for elliot wave count (wave 4)im still practicing and this is for the better of my own education, i want to begin trading using elliot wave i took the most relative high and begin plotting were on wave 4 i believe that price can cont on to wave 5 and tp will be set at 1.28500 area
Elliot Wave Theory: Motive waves - Impulses + Rules (pt.3a)In this lesson we will go over motive waves more in depth
Leave a like if you wish to follow this series, every update will be posted below.
If you are following this series I would suggest writing down what is shown in notes to help your brain remember these patterns, rules, guidelines and more. Elliot Wave theory is based on pattern recognition, and to recognize these patterns in real-time you must first remember them.
Any questions are welcome in the comments below!
There will be a 3b and 3c covering correct counting and incorrect counting and diagonal triangles posted below in the updates. Just a little bit under the weather but will try to post it ASAP.
Elliot Wave Theory: Application and Fundamentals of waves (pt.2)In this lesson we will go over the application of the wave principle, and the fundamentals of impulse and corrective waves.
Leave a like if you wish to follow this series, every update will be posted below.
If you are following this series I would suggest writing down what is shown in notes to help your brain remember these patterns, rules, guidelines and more. Elliot Wave theory is based on pattern recognition, and to recognize these patterns in real-time you must first remember them.
Any questions are welcome in the comments below!
Elliot Wave Theory: Degrees, Basic structure and Fractals (pt.1)I am going to start posting a visual guide to Elliot Wave since a lot of people ask me about where they can learn Elliot Wave theory, and many complain about how long it usually takes. So with this I hope I can simplify the theory for you. This theory works very well in financial markets as well as cryptocurrency markets (not /BTC but /USD)
Introduction : Elliot Wave theory was developed by R.N. Elliot and popularized by Richard Pretcher. This theory claims that crowd behaviour moves in clear trends. Elliot identified a certain structure to price movements in financial markets. I will be explaining this theory and most structures in a somewhat simplified version in the upcoming ideas, so this is pt.1, in these parts we will cover: Basic structures, Degree of waves, Fractal nature of markets, Wave personality, Impulse/Motive waves, Corrective waves, Fibonacci projections and retracements, cycle of markets in relation to Elliot Wave Theory, The right look, Percentages, and Fibonacci relationships, Rules, Guidelines and more. I am making this series to help those unfamiliar with Elliot Wave theory, for those who might be struggling in it to get a visual understanding, and for those who might be too impatient to read through the entire book. Many are quick to brush off Elliot Wave theory as hocus pocus because they do not take the time to remember the patterns, rules, and other things then try to apply them to real-time charts without the needed knowledge, however I guarantee you if you take the time to memorize these patterns and apply them to the charts in front of you while using proper rules, etc. you will be able to predict most price moves in real-time.
Basic structure : The basic structure I have shown is based off of a "normal" 8 wave structure which has an extended wave 3, and as we know markets can behave irrationally and not follow the norm, sometimes there are complex corrections and non-typical extensions, but we will cover that in further posts.
Leave a like if you wish to follow this series, every update will be posted below.
