JimFred
Long

Wave 3 ETHXBT seems to be beginning

KRAKEN:ETHXBT   ETHXBT
435 7 5
A major correction in ETHXBT             recently completed. It was either a wave 2 or a wave 4, by definition.

EW theory says that wave 4 CAN NOT overlap wave 1.

But the correction, (in ETHXBT             , NOT ETHUSD) overlapped the top of wave 1. Ipso facto, the ETHXBT             chart is saying that in that particular market, the correction was a wave 2, and that therefore, a wave 3 has just begun.

As of this writing, a wave 1 in the 10 minute chart has almost completed, up 13% in the last day

According to this 5 hr             chart, 144 candle bull setup, the next 2 months will be outstanding...
Update 4/18/2016 So, it is coming clear to me that the correction that I thought marked the end of the bear market, was in fact a correction to the main bear trend that took the form of a " sharp zig-zag". It came as a surprise to me, as I was expecting a "flat". I was caught prematurely short when the market made a huge run up during the "C wave" of the move. Live and learn, as they say. However, unless the correction gets complicated from here, as corrections sometimes do, the zig-zag is now complete, as both the A and C waves had the EXACT same price moves. IMO, the bear will likely resume fairly soon from here. Happy trading
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Lol
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Update: The long trade has been very kind to date. But I am concerned that the long position is no longer tenable - support is failing. I have closed my long at .0195. Will short if the market closes a bit lower...
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I should point out that despite the difficulties, there are strict rules of construction that tell you when you are wrong, or right. This is the case here. If the correction had completed just above the top of wave 1, as it did on the ETHUSD chart, EW analysts would be arguing about whether or not the correction was a wave 2 or a wave 4. But, because it closed BELOW wave 1 on the ETHXBT chart, it MUST be a wave 2. That is FAR from being a trivial observation, because wave 3s are typically awesome...
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DeniseM JimFred
thank you so much for your explanation. I'm gonna look to more info about this. Hope you can also tell me how I can setup the arcs for this? I think this is highly useful. I look forward to your charts and analysis everyday :) Thanks once again.
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Elliott Wave theory is named after a guy named RN Elliott who, while convalescing in the 1940's and had way too much time on his hands, noticed that there was a familar pattern on his stock charts that kept repeating, albeit with variations. It has since been proven that in fact he was correct. However, to be truthful, it is MUCH easier to count waves AFTER the fact. Counting them in real time is difficult at best and fraught with errors, because there always seems to be at least two different possibilities, as to what a chart is doing.
The web is full of courses on EW theory. If you are an aspiring trader, I would strongly recommend that you add EW to to your list of things to learn and hopefully master.
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hi i'm a TA noob, can you please ELI5 this for me?
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