EOS 85% gains - fifth wave pump in about 15 days 6:1 risk/reward
Good day traders and welcome to this TA for EOS - a total SBD coin that should be absolutely worthless based on its legal descriptions
TLDR:
Entry: 17800, 17500, 17000 or after confirmation at above 19000 satoshis
Stop: some where safe below 17000
6:1 risk/reward ratio if entry at 19000
We had a nice pump for EOS to break out this new bull run starting from the middle of March with a leading diagonal, or rising wedge acting as the first wave (i). Typically a rising wedge in the first wave is followed by a correction of roughly .618 to .786 of the first wave. However, in our case, the FOMO was so strong that wave (ii) barely did a .236 retracement, a rare but valid fibonacci correction level. This was followed by a violent wave (1) of (iii) that did 55% gains in literally 2 days. Wave (3) of (iii) did a jaw dropping 144% within 12 days.
We know for sure that EOS is in a hurry to get some where guys… Which brings us to this analysis - the fifth wave (5) of (iii)
After working with Elliott waves for many years, I have my own simplified version of Elliott waves which helps me project the fifth wave by the length of waves 1 and 3. Simply put, if 3 is 3 of 1 from the end of 2, then 5 should be around 5 of 1 in the same projection. You can do some regression testing on this on other charts and let me know your thoughts in the comments.
With that said, wave (5) is expected to target roughly 33K satoshis or 85% gain from the current price of roughly 18K. With those gains in mind, we need to look for an entry at either the end of wave 4 or if we missed that, then the end of wave 2 of 5.
Zooming into the hourly, I see an impulse wave after the larger ABC zigzag which tells me we might be already in wave 5 and that this is wave 2 of (5). With that said, we have a few options for our entry:
Wait for confirmation above 19000
.618 retrace at 17800
.786 retrace at 17500
Double bottom at 17000
Based on fib time and our channel, we should expect this trade to last until roughly the middle of May. This idea is invalidated below 13000 which I feel is a far stop so I would stop some where below 17000 and wait till wave 4 reveals itself for another entry. Even if you wait for confirmation above 19000, the gains would still be roughly 60% and the r/r ratio would be roughly 6:1. Not a bad trade in my book.
Good luck out there guys and stay safe
Kinashi_San
TLDR:
Entry: 17800, 17500, 17000 or after confirmation at above 19000 satoshis
Stop: some where safe below 17000
6:1 risk/reward ratio if entry at 19000
We had a nice pump for EOS to break out this new bull run starting from the middle of March with a leading diagonal, or rising wedge acting as the first wave (i). Typically a rising wedge in the first wave is followed by a correction of roughly .618 to .786 of the first wave. However, in our case, the FOMO was so strong that wave (ii) barely did a .236 retracement, a rare but valid fibonacci correction level. This was followed by a violent wave (1) of (iii) that did 55% gains in literally 2 days. Wave (3) of (iii) did a jaw dropping 144% within 12 days.
We know for sure that EOS is in a hurry to get some where guys… Which brings us to this analysis - the fifth wave (5) of (iii)
After working with Elliott waves for many years, I have my own simplified version of Elliott waves which helps me project the fifth wave by the length of waves 1 and 3. Simply put, if 3 is 3 of 1 from the end of 2, then 5 should be around 5 of 1 in the same projection. You can do some regression testing on this on other charts and let me know your thoughts in the comments.
With that said, wave (5) is expected to target roughly 33K satoshis or 85% gain from the current price of roughly 18K. With those gains in mind, we need to look for an entry at either the end of wave 4 or if we missed that, then the end of wave 2 of 5.
Wait for confirmation above 19000
.618 retrace at 17800
.786 retrace at 17500
Double bottom at 17000
Based on fib time and our channel, we should expect this trade to last until roughly the middle of May. This idea is invalidated below 13000 which I feel is a far stop so I would stop some where below 17000 and wait till wave 4 reveals itself for another entry. Even if you wait for confirmation above 19000, the gains would still be roughly 60% and the r/r ratio would be roughly 6:1. Not a bad trade in my book.
Good luck out there guys and stay safe
Kinashi_San
Comment:
Should be 1:6 risk/reward but you get the idea
Comment:
Looking at EOSUSD, it seems we've broken out of a triangle with a rising wedge. Likely will see the $17 range prior to testing new highs
Comment:
Ladies and gents, welcome to the EOS train, we are departing now. Good bye $17, hopefully we won't see you again
Comment:
Updating target for this trade to roughly 41K satoshis
