Chapter 7: "the Mighty 2.168: like a Rook in Chess"
"Impulse" is a surge that creates "Ripples", like a pebble into water. Each of the Ripples has precise bounds defined by the "Golden Ratio". Price will often ricochet, creating a "Ping" that one can almost HEAR.
The 2.618 is a Special ratio, 1.618 x 1.618, as the Golden Ratio Squared. It is like a Rook in Chess: Strong, Steadfast, and Dangerous at a Distance. If a wave is to be sustainable, then it must have a very strong 2.618 core.
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This is "Chapter 7" of my ongoing "Book" detailing my methodology. The first six chapters are linked below, best to start with #1 and #2. I will use this Chapter to collect example of the Might 2.618 in action.
Previous Chapters:
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Ordered Chaos
every Wave is born from Impulse, like a Pebble into Water. every Pebble bears its own Ripples, gilded of Ratio Golden. every Ripple behaves as its forerunner, setting the Pulse.
each line Gains its Gravity. each line Tried and Tested. each line Poised to Reflect.
every Asset Class behaves this way. every Time Frame displays its ripples. every Brain Chord rings these rhythms.
He who Understands will be Humble. He who Grasps will observe the Order. He who Ignores will behold only Chaos.
Ordered Chaos
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Comment
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More about the Live Chart:
This particular example is from the 2020-21 Bitcoin bull run. Here is a picture that shows this wave in context: It marks perhaps the last wave of the cycle (yet to be determined). But if the 2.618 holds then there is a chance of higher highs yet.
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This example also shows a "Typical" wave structure: 4.236 the most common end point. 2.618 the most common Retrace. 1.618 a good early confirmation.
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This also demonstrates the difference (or lack of) between using "Extensions" vs "Retracements" Shown here is a Purple "Retracement" plot, overlaid on the original Blue "Extension" plot. The classic retracement levels are of course mathematically the same as the extensions. HOWEVER, the difference is this method gives the key levels BEFORE the wave is "done".
With practice, one can identify the "Impulse" soon after it has occurred. Then we look for Confirmations (as in "Pings") at the ensuing extensions. Once we have a couple of Pings, we can confident in ALL of the levels.
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Getting back to the 2.618, here is a zoom around that area: Two "Loud" Pings exactly on the 2.168, and after a horrific drop. Imagine how much energy (money) it took to create those bounces. Also note the Pings on sister fib 3.236, which told us the 2.618 would be relevant again.
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So does that mean we continue towards higher highs now? Not necessarily, but it DOES mean this is the BEST chance for new highs. Also means that if we lose the 2.618, then it is likely to fall much further.
It's really cool you're publishing your methodology as a book here and with easily linked to chapters! Thanks for sharing. We've featured this in Editors' Picks and look forward to hearing what others say.
DumbNotWise
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Trading is the Music
Fibonacci is the Rhythm.
:)
watchtrend
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@DumbNotWise, Nice trending Fib, and trends, i expecting self a huge recovery to LONG
kratos921992
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I think you should stop trading
pluckyHunter3666
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You have all left BTC to trade Dodge coin because de centralised finance and other bullshit made up trends no longer exist to be popular.
transparentone
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This is some of the best work I have ever seen in Tradingview Ideas. Thank you so much for shedding some light on this. I felt a top a few weeks back and agonized with my finger over the "go to tether" button for two consecutive weekends (my wife begged me to sell on the first weekend). Amazing you describe it as a vibration or ping, and I felt something similar, like an airplane stalling at the top of its climb. Like we were in a zero gravity state for a moment. I will remember that feeling and learn what you are describing here so math can be applied. It literally kills me knowing my senses gave me the answer, but greed and fear of missing out won the day again. I have waited for 4 years, so I am ok with waiting some more, but it kills me trying to grasp where I would be if I had just trusted my instincts.
Francis889
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can i ask why the impulse move is neccessarily in jan rather than the one around the beginning of march?
wormisimo
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@Francis889, +1 on this question. I am struggling to understand why this specific impulse was chosen at these specific values. There could be others chosen with a very different result. It seems to me like if it was chosen just to prove a point the OP is trying to make.
EuroMotif
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@Francis889, Hi, this particular impulse was caused by Elon Musk, think when he revealed that Tesla had bought Bitcoin with some of their cash reserves.
And that is the heart of my method: there must be an Impulse of Force, that sets a wave into motion, and the "Ripples" of that wave are what we often observe as turning points.
CoyoteCoin
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I found this to be a detailed and informative read. I appreciate it and I thank you. I loved your poem 😻💞