I love the fact Tom DeMark gives strict and precise rules on how to determine his indicators and patterns. I have applied his rules for TD D-Waves (his own variation of Elliot Waves) to the actual BTC USD price action.
To origin D-Wave 1 you need to have a 21 low bars close (a close less than all twenty prior closes), then the D-Wave is confirmed when you have a 13 high bars close (a close that is higher then all twelve prior closes). The fade and completion of D-Wave 1 will come when you have a 8 low bars close (a close less than all seven prior closes) and this means also that D-Wave 2 is in progress.
D-Wave 2 will extend until when the market records a 21 high bars close (a close that is higher then all twenty prior closes), that will confirm too that D-Wave 3 is in progress.
Applying those rules to actual chart, we see D-Wave 1 is complete and D-Wave 2 is in progress.
Tom DeMark gives this price projection for D-Wave 2: its pullback should ideally be 61.8 percent of the distance traveled between the low close of D-Wave 1 and the high close of D-Wave 2. The theory is giving us a target price around 5.8k before we have the raise by D-Wave 3.
D-Wave 3 officially confirmed with the candle of 23 Apr. His theoric target is now following DeMark theory 1.618 x the range of D-Wave 1. In numbers: (7367.36 - 4841.67) * 1.618 + 4841.67 = 8929.85
CryptoStef
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@PigFan, any read about d-wave :)))
UnknownUnicorn4800276
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@CryptoStef, following DeMark rules we are still in D-Wave 3. Need a 13 days bar low close to open D-Wave 4. We went close to it on 11 May (that was a 12 day low), so I'd say with actual data we will be in D-Wave 3 until a close under 8570. Of course this will change as the market develop, but the rule is simple: 13 days low.
UnknownUnicorn4800276
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It is interesting to note now that a close above 7367 is the qualifier to complete D-Wave 2 in next 7 days (far away from his DeMark projected target) and confirm the start of D-Wave 3 (the wave that in theory bring the most value of the movement). Curious to see how this will develop.
UnknownUnicorn1846081
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Bang in line with my prediction of 5.3k :).
UnknownUnicorn4800276
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We will see, this is just theory. Anyway 5.8k is a little less pessimistic :D
mycotoxin
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@PigFan is very interesting thanks for sharing - im going to look up more info on this .
UnknownUnicorn4800276
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@mycotoxin, I suggest you the book I have put in bibliography: it explains very well all DeMark indicators.