Theory says: a zig zag wave has a 5 (A) - 3 (B) - 5 (C) structure
This might sound obvious for some, but was a deadly trap for me:
- the 5 wave up/down structure of a zig zag does not folluw the same rules of a 5 wave structure of an impulse wave.
Which scenario is most likely:
- the orange wave WXYXZ, where wave Z is 2/3 completed?
- the blue wave ABC, where smaller wave c is still to start?
Note the similarity of waves WXY with the sub-waves of Z is remarkable.
End of wave Z is plotted with the same proportions as waves WXY.
Elliott Wave analysis applied on the 1 hour BTCUSD chart (kraken).
Current B wave consists of wxy, which in turn is a flat: 3 (ABC) -3 (ABC) -5 (WXYXZ)
Y is at 100% of w.
Based on this, the descend should be completed and the ascend should commence already.
Elliott Wave analysis applied on the 4 hour BTCUSD chart (kraken).
The ABC wave is a ZIGZAG:
- wave A contains 5 waves up
- wave B contains wxy waves correction, which should be completed (wave y is now 100% of wave w). Also, B is now at 85.4% of wave A. If descending any further, the whole ZIGZAG wave is no longer applicable.
- thus, wave C is now expected to...
