WTC showed us today, what is the power of leading diagonal known by eliott wave traders.
Leading diagonal is basically rising wedge and many people think, that this is the bearish pattern - they are not 100% right, because rising wedge can be also trend reversal pattern, because rising wedge is ALWAYS last or first wave. And we got nice example of rising wedge as a 1st wave on the chart of WTC/USD. After is leading diagonal finished, we usually see pullback to 0,382 or 0,618 fib retracement and then we always see 3rd (or c) wave.
When we see leading diagonal in the chart, there are basically only two scenarios, that can play out :
1) BEARISH COUNT
2) BULLISH COUNT
So are we going to see similar price action on XRP, BTC, ETH and most other coins as we got today on WTC ? 100% possible.
But for that to happen, I think XRP must go down first at least to 0,382 fib retracement. ( I am using XRP chart, because the leading diagonal is the most clear there, but it can be applied to most other cryptos, including BTC)
So definitely keep that scenario in the mind, because if we are dealing with leading diagonal WITH the bullish count mentioned above, then rest of 2020 will be probably SUPER ULTRA bullish.
Leading diagonal is basically rising wedge and many people think, that this is the bearish pattern - they are not 100% right, because rising wedge can be also trend reversal pattern, because rising wedge is ALWAYS last or first wave. And we got nice example of rising wedge as a 1st wave on the chart of WTC/USD. After is leading diagonal finished, we usually see pullback to 0,382 or 0,618 fib retracement and then we always see 3rd (or c) wave.
When we see leading diagonal in the chart, there are basically only two scenarios, that can play out :
1) BEARISH COUNT
2) BULLISH COUNT
So are we going to see similar price action on XRP, BTC, ETH and most other coins as we got today on WTC ? 100% possible.
But for that to happen, I think XRP must go down first at least to 0,382 fib retracement. ( I am using XRP chart, because the leading diagonal is the most clear there, but it can be applied to most other cryptos, including BTC)
So definitely keep that scenario in the mind, because if we are dealing with leading diagonal WITH the bullish count mentioned above, then rest of 2020 will be probably SUPER ULTRA bullish.