Hi guys, please could you read the full context of this idea, as it clears up a lot of worries about my analysis which I have been asked about recently, and I would like you to understand that I am certain that we are heading in the direction I have planned on. Thank you in advance. Also, please put your diagrams in dark mode, to see all the lines well!
First of all, I would like to apologise for one of mistakes in my previous posts about bitcoin. I have been wrongly labelling the correction as a 5-3-5-3-5 structure, a very silly mistake, considering this is not possible with triangles. I have now corrected the structure to a 3-3-3-3-3. This mistake doesn't effect the structure of the overall correction, so there really isn't anything to worry about, just frustrates me as I want to be as transparent and successful with you guys and mistakes like these make me look stupid. Anyways, I am posting this after a very good question was asked to me by a fellow Elliott wave analyser, who asked if the first three waves within the correction could be a possible expanded flat correction. I have spent the last hour looking over Elliot wave, most specifically the book, and his possible idea, and I am going to stick with my original conviction that we are still in the process of correcting. This is because the impulse wave the comment spoke about being possibly the beginning of the new fifth wave in a larger macro trend, has an incorrect structure. The 4th wave enters the area of Wave 1-Wave 2, which means that the wave is not following the rules of Elliot Wave. Furthermore, here are the Rules and Guidelines for a contracting triangle relevant to our triangle, directly from the Elliot Wave Principle book (Pg 90) :
Rules *A triangle always subdivides into five waves *At least 4 waves among waves A.B,C,D and E subdivide into a zigzag or zigzag combination. *Wave C never moves beyond the end of Wave A, Wave D never moves beyond the end of Wave B. The result is that going forward in time, a line connecting the end of Waves B and D converges with a line connecting the ends of Waves A and C. A triangle never has more than one complex sub wave, in which case it is always a zigzag combination or a triangle (In our case this would be Wave C)
Guidelines * Usually, wave C subdivides into a zigzag combination that is longer lasting and contains deeper percentage retracements them each of the other sub waves.
I really hope this explanation clears up any overall doubts about my analysis, as after really going over all the rules and complexes of Elliot Wave, I am now even more bullish on the correction and overall trend on Bitcoin. My prediction of Wave 5 reaching a level of around $28,000 is a perfect .5 retracement of Wave 3. I apologise once again with the mistakes I have made labelling certain wave structure incorrectly. I will do my best to avoid ever doing this again. I really want to help you guys out as most of the analysis I see these days is rubbish and pushing false motives.
Thank you for taking your time to explain this to all!
ASA2001
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@Sefr90 no problem. Thank you for the appreciation
innocentAccoun35113
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Here's a tip to save you the hassle of incorrect labelling (as shown here)in the future. Use MACD in conjunction with Elliot wave labelling. In a downtrend MACD values at wave 3 would be clearly lower than in Wave 1. It's vice versa in an uptrend.
WicktatorFX
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This is beautiful!
ASA2001
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@Wicktator thank you very much. 😊
WicktatorFX
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@ASA2001, hey man just wanna say that your charts don’t go overlooked. Takes a lot to mark out all the Elliot waves and gain an understanding like that! Again, great work!
ASA2001
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@Wicktator thank you, means a lot especially from someome with your audience. I will continue to work hard and hopefully help as many as I can. Hope my work benefits you
WicktatorFX
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@ASA2001, it does help me and I’m sure it helps others too. Goodluck!