Long

BCH-ANALYSIS-MICRO WAVE

Updated

is a buy.

I will use Fibonacci, Elliot Wave Theory for this analysis.

I am using the 1 hour timeframe.

I'm seeing a MICRO Wave formation along with an ABC correction.

The Micro Wave is highlighted by the teal numbers.

This wave passes all of Elliot's Wave Laws.

1.Wave 2 can never exceed the start of Wave 1 (i.e., $488.20)

Key:The point to remember here is Wave 2 can never go below the bottom of wave 1. Always place a stop just under the beginning of Wave 1.

If this is a true Wave formation we need to make sure this level holds.

2.Wave 3 can never be the shortest impulse wave

3.Wave 4 can never overlap Wave 1 (i.e., cross into the same price area) except within a diagonal triangle

Be aware that there is a tendency for two of the three impulses to be equal, i.e. 100% of each other. So if Wave 3 is an extension, there is a bright chance for Wave 5 to equal wave 1 in distance.

Impulse Wave 3 was 5.79%
Impulse Wave 5 was 5.60%

Fibonacci Ratios:
There are perhaps seven or eight main ratios that seem to appear again and again in most charts. These are 23.6%, 38.2%, 50%, 61.8%, 100%, 123.6%, 138.2% and 161.8%.

Wave 2 typically finishes at either the 50% or 61.8% retracement of Wave 1. Occasionally, we also get a 70.7% retracement, and a bit more frequently a full 100% retracement of Wave

The upcoming wave 3 will travel a minimum distance equal to 100% of Wave 1. If the third wave started from 61.8% or 100% retracement level, you will look for the third wave to tend to move a distance of 161.8% of wave 1. Any third wave that does not travel more than 161.8% of Wave 1 is considered to be a ‘normal’ Wave 3.

We are now looking for the start of Wave 3...

When a normal third wave is completed, wave 4 typically corrects the third wave by 38.2%.

I have place a Fib Time Zone from the beginning and end of Wave 1. Wave 2 usually finishes near the 2nd Fibonacci Time Zone.

Correction:

ZIGZAG
This is the simplest form of correction, (A, B and C) where Wave A is made up of five waves and Wave B has 3 internal waves. Wave C is always made up of 5 waves in any correction, irrespective of the category.

Wave A:

1HR:

See Related idea for more charts and analysis.

Will update.

-AB

Note

Better 1HR chart.

Note

Feeling a breakout...

Note

TTM-WAVE

Consolidation

Note

Wedge Formation

Trade closed: stop reached

STOP HIT

Note

$300?

Trade active

Note

Wave?

FibMarketWatch

Also on:

Related publications

BCH-Fibonacci Spirals 1.2 - Bottom & Breakout

by FibMarketWatch

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