Bitcoin | The First Pullback Of The Next Bull Cycle Is Coming
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Markets are driven by multiple reasons that are difficult to quantify and that's including human emotions, fundamentals, technical analysis or any other unknown reasons. price never moves in a straight line. in fact it is constantly cycling up and down, while price cycles are random as they switch between trending, reversing and consolidating in an unpredictable sequence. nonetheless, you can still find some predictable patterns within those random movements.
The fact that repeated patterns often develop, within currency price movements, is the fundamental basis of technical analysis and technical trading methods. one pattern that is very important to understand and learn is the basic trading cycle. by knowing how the trading cycle works and often develops, it becomes possible to recognize where the price movement is within the cycle. this, in turn, can guide trading strategy by providing useful signposts relating to when and where trade entry and exit points should be set. an understanding of the price cycle sequence will also help improve the use of trading tools, such as indicators and oscillators.
The trading cycle also forms the basis for a number of more complex price pattern analysis theories, like, The Elliott wave pattern and Harmonic wave patterns.
In the chart above we have the Elliott wave pattern, we've been in an upward or uptrend channel for a year forming a higher highs and higher lows. and this uptrend channel made of five smaller waves, and as Elliot said that, the first 5 waves serves as a clue in preparation for the first pullback in the opposite direction. for price to cycle higher, you need a swing low before it moves to create a swing high.
So what is a pullback :
market or price action "Pullback", by definition, happens when price moves at least bar against the dominant trend direction. a pullback is a price movement that moves in the opposite direction of the trend, but it is only temporarily price movement before it resumes back into the maim market direction.
Pullbacks are sometimes referred to as price retracements or corrections. some may even just call it a "Dip". it doesn't matter what you call it as long as the temporary counter trend movement resumes in the market direction later, and it does so by breaking beyond the recent price extreme.
As Elliot stated in his theory " Action is followed by reaction "
We might have An ABC zigzag corrective pattern in This coming pullback, cuz this is the most common correction,
A Zigzag is a sharp, three wave corrective pattern, labeled A-B-C. wave A and wave C of a zigzag correction always consist of five subwaves. in contrast wave B consists of only three sabwaves.
The length of of wave C is likely to be 1 times wave A, or 1.618 times wave A, or 2.618 times wave A, these are Fibonacci extension numbers.
Fibonacci and Elliott wave theory are commonly used together. the Elliott wave has time and time again proven to be remarkably effective in forecasting the market, and Fibonacci levels play an important role in its accuracy.
According to the Elliott wave theory, catching first pullback in the impulse wave happens to be the most profitable setup since wave 3 is The mother " the longest " of all waves. on the other hand, 5 waves serves as a clue in preparation for the first pullback in the opposite direction, and that is wave C in the corrective wave sequence.
On the chart above i sat the levels were the price might go , along with the targets. the first price target gonna be at (113783).
" When you identify an uptrend and decide to buy, you have to decide whether to buy immediately or wait for the dip". Alexander Elder.
Markets are driven by multiple reasons that are difficult to quantify and that's including human emotions, fundamentals, technical analysis or any other unknown reasons. price never moves in a straight line. in fact it is constantly cycling up and down, while price cycles are random as they switch between trending, reversing and consolidating in an unpredictable sequence. nonetheless, you can still find some predictable patterns within those random movements.
The fact that repeated patterns often develop, within currency price movements, is the fundamental basis of technical analysis and technical trading methods. one pattern that is very important to understand and learn is the basic trading cycle. by knowing how the trading cycle works and often develops, it becomes possible to recognize where the price movement is within the cycle. this, in turn, can guide trading strategy by providing useful signposts relating to when and where trade entry and exit points should be set. an understanding of the price cycle sequence will also help improve the use of trading tools, such as indicators and oscillators.
The trading cycle also forms the basis for a number of more complex price pattern analysis theories, like, The Elliott wave pattern and Harmonic wave patterns.
In the chart above we have the Elliott wave pattern, we've been in an upward or uptrend channel for a year forming a higher highs and higher lows. and this uptrend channel made of five smaller waves, and as Elliot said that, the first 5 waves serves as a clue in preparation for the first pullback in the opposite direction. for price to cycle higher, you need a swing low before it moves to create a swing high.
So what is a pullback :
market or price action "Pullback", by definition, happens when price moves at least bar against the dominant trend direction. a pullback is a price movement that moves in the opposite direction of the trend, but it is only temporarily price movement before it resumes back into the maim market direction.
Pullbacks are sometimes referred to as price retracements or corrections. some may even just call it a "Dip". it doesn't matter what you call it as long as the temporary counter trend movement resumes in the market direction later, and it does so by breaking beyond the recent price extreme.
As Elliot stated in his theory " Action is followed by reaction "
We might have An ABC zigzag corrective pattern in This coming pullback, cuz this is the most common correction,
A Zigzag is a sharp, three wave corrective pattern, labeled A-B-C. wave A and wave C of a zigzag correction always consist of five subwaves. in contrast wave B consists of only three sabwaves.
The length of of wave C is likely to be 1 times wave A, or 1.618 times wave A, or 2.618 times wave A, these are Fibonacci extension numbers.
Fibonacci and Elliott wave theory are commonly used together. the Elliott wave has time and time again proven to be remarkably effective in forecasting the market, and Fibonacci levels play an important role in its accuracy.
According to the Elliott wave theory, catching first pullback in the impulse wave happens to be the most profitable setup since wave 3 is The mother " the longest " of all waves. on the other hand, 5 waves serves as a clue in preparation for the first pullback in the opposite direction, and that is wave C in the corrective wave sequence.
On the chart above i sat the levels were the price might go , along with the targets. the first price target gonna be at (113783).
" When you identify an uptrend and decide to buy, you have to decide whether to buy immediately or wait for the dip". Alexander Elder.