ormin79
Long

Hunting of the wave 5th

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
I have described this method here
Comment: In BTCUSD this idea should work better, as depth of market is much better than in XEM pairs (thats a same for XEM i hope that changes in the future).
Comment: I will describe which entry and exit levels with SL to use here, after some time.
Comment: Basically half of planned possition could be entered now, half later if market slides to 3700-3850 area and show signs of bouncing from there. But for position taken as in my chart (around 4150) SL should be for whole position under 3550. The same for every position taken in 3700-3850 area. If You can afford wider stop loss, than next place is under 2900USD. But for me invalidation is breaking 61.8 retrace from hypothetical wave 3rd (in 5th of hier tier).
Comment: TP points for entry in 4000-4150 area are: 5250 (50% quantity of this position), 6500(25-30%), 7750 (20-25%)
Comment: If market slides lower to 3700-3850 area i will describe new TPs levels.
Comment: For more conservative players (especially for those who are scared to catch the dips) is better wait for three-wave structure (when wave 3 is longer than 1, i use 1.272Fibo or higher) from now on, just to have more confidence, that market really builds this 5th wave, and jump in on retrace of this 3rd in 3rd in 5th wave, with tighter SL.
Comment: Now is good example on smaller timeframe.

Comment: As 5th wave hunter i should take position@4300 (38.2 Fibo of wave 3rd retrace). Invalidation when price slides under 4240 (so SL much under that or executed personally). First TP@4370 extention 1 to 1 (0,5 is to small for me in this timeframe and with this SL), second @ 4450. Let's observe how this plays out.
Comment: correction first TP@ 4470 and second 4550:)
Comment: Also ISHS formation give here more credibility to this entry.

Comment: exit point for this formation should be in 4500-4700 area (exit after 5 and 15 min candlesticks analyze and when are some divergences on 5min, 15min and 1h chart.
Comment: Stop loss for this formation under 4150
Comment: You can also hold small part of taken position up to 6000+ area. But SL in entry point must be used after BTC will hit 4500.
Comment: My SL that i moved in my entry @ 4305 hited, and now as 5th wave was around 0.5 of 3rd i stay asaide, and wait for other moments when i see hunting possibility;)
Comment: Also ISHS playing in this situation is risky.
Comment: This market behaviour (market dont respect formations that he makes, in both directions) indicates clearly that now we have no trend, only sideways moves. But tendency to getting BTC lower will be more visible if he will go under 4000 support.
Comment: This example of 5th wave hunting that i gave You today, shows how to get out of position if market does things, that are not pleasant for us, how to decrase risks from trades like this.
Comment: Also playing like this with market is much more risky due to higher volatility, and misrespect for Elliots waves rules on lower timeframes, than in higher (like 1h, 4h, 1d).
Comment: I'am now also out of market with my midterm positions. I only hold my very old Bitcoin's stack holded by me from 2011.
In BTCUSD this idea should work better, as depth of market is much better than in XEM pairs (thats a same for XEM i hope that changes in the future).
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