# A Dramatic Headline!!! [ ;) ]

BITFINEX:BTCUSD   Bitcoin / U.S. Dollar
553 views
553
Several possibilities of trades in each direction, also I talking about very important rules of the Elliot Wave Theory:

Impulse wave definition
corrective wave definition
Fibonacci forecasting
alternation rule by Elliot Theory

Cheers!

Comment: Another thing I'de like to mention is this explanation, this is for more advanced traders, but if you are not considering your self as one, you can still read and learn and if you have any question I'm here to help!

In the picture, you can see the RED trendline and the GREEN one, I will talk about each and one of them separately and then, in the end, will combine tham together, please stay tuned:

RED:
first of all, this trend is by the book!
1st and 5th wave are equal length, 3rd wave is 1.618 of the 1st wave, 2nd wave was bit shallow correction and so, by the alternation rule, the 4th wave was a deeper correction.

GREEN:
a corrective wave of ABC, wave A is an impulse, wave B is a simple zigzag, and wave C is an impulse.
An impulse wave is made of 5 smaller degree wave, so the big A is made of 5, the B is made of 3 (retraced to 61.8 fib level), and C is the most complex (made of 5 smaller degree wave) one in the series and most of the time his length is equal the length of wave A.

COMBINING OF THAM:
The triangle is the daily is made of waves that retraced at 78.6% fib ret, by my analysis, by the GREEN trand line, at the c wave is reaching to 78.6% fib ret of the previews move, than our D point in our bigger triangle will marge and only than we will be going down to new low's.

Comment: Same idea... a small update, after an impulse wave which is A wave, we came down to 9800\$ as B wave, and now it looks like we initiating the final C wave which is Impuls as well.

If the first wave A weren't combined out of 5 waves, we could think it may be the starting of a flat correction (3,3,5) BUT the first A was is 5 waves old and that is a clue for us to understand the correction should be a zig-zag correction, in a zigzag correction the B wave go up to 50% fib ret of the previews wave (you can check it for your self, the GREEN B wave 50% out of the first A wave).

So now by the Elliot wave theory, it seems we will go bit down till 61.8% fib ret as you see at the picture, and go for the 3rd wave run as a compound of 5th impulse

Yes!!!! Very good work! Thank you for sharing!!
ricebang
@ricebang, Thank you buddy, Hope you'll get some good decisions out of it ;)
Great chart and analysis! Thank you!! I just published my very 1st chart idea a little while ago!!!