I have been following the crash of BTC , Alt-coins and BCHSV during this couple of week, I applied Theory to have a better understanding of the big picture of the market. Im not an expert but recently I have been dedicated to learn Theory and this was the out come.
- Entry: 40 .15-41.55 (Corrective Wave 2)
- Stop Loss: 36.50 (Under 1rst Impulsive Wave ((1))
- Take Profit: 63.8 ( in My opinion It has over extended but I happy with the outcome of the trade, not feeling that I miss out an opportunity)
AS everyone know BCHSV has been making double red digits during all the week, It was quite interesting, because even tho it was nasty to HOLD a bag of BCHSCV, However, it was very profitable to do trades under 5 min time frames, swings could vary between 2 to 7 %. It was very risky so you needed to have a good plan and understand when you should be getting out, mean know what are you doing. (I dont recommend it unless you are confident of your trading skills in that case go for it mate)
Timing the bottom (Price 37.50):
Timing the bottom it is always hard and not recommended, but since I have been trading this asset from Birth and I been having the time to familiarize with it. We have a Massive drop on BCHSV at 140 per coin to 51 per coin, It happened because it couldn't managed to break resistance Also we had a divergence and not to Mention BTC was crashing, All this translate in a major down momentum by this time I didn't know that we were dealing with a 3rd , which is the strongest and longest. During this time I was waiting in the sidelines, and I would jump in and out if i see an opportunity. I took this chance to learn and knowing that we are in a wave 3 give me the perspective and advantage to precisely time the bottom using theory and Tool. I Got as FINAL target for wave 5, 38 per coin, funny tho, I bought at 38.50 and I did panic sell at around 37.85! And then and ended up buying at the Entry previously mentioned.
If I used chart pattern techniques i probably would miss out this entries, I couldn't see a well define which is one of my favorites chart patterns, Yes we broke a major but that does not mean that we bottom yet, you would need some sort of confirmation, however with + Fibonacci + Chart pattern and Candle Sticks formation. I could get a nice entry even tho I panic at the beginning. Guys Trust your trading plans.
Another quite interesting Pattern that I notice when I was counting for BTC was that every time we get a Pattern tend to change from corrective to impulsive waves (from 3 to 5) and it makes the whole sense now that i know but before it was quite a revelation.
Another Signal that I personally like to use to time the Bottom and tops was the and divergence, It shown as a yellow line, you can see that even tho we broke a new lows did not follow to new lows and it same happen at what I considered Wave 5.
Ive been riding this correction wave since the beginning, to be honest the best trade I have done so far. Every time I hit a target I re-evaluate to see if it worth it to re-join again. Saturn Target become parabolic so I got out at 98.36.
Elliott Waves: this up trend movement is a Corrective Elliott wave, inside it, It can find an Bullish movement call Impulsive wave 12345 (target2), and then corrective wave ABC that lead me to re-entry. However, we still in a Corrective wave, even tho it does not feel like it.
Impulsive wave 1 that define the trend, Wave 2 corrective forming a ascending triangle, 3 longest and strongest wave of all(this one went parabolic), 4 corrective(current wave). So in this instants we have the potential to go full retard mode up to 120 per coin, Neptune target, which is the 61% Fibonacci level. however we need to stay above 96 lvl. Otherwise ill be tapping out.