Elliot wave theory has 3 unbreakable rules. only 3. Much of the rest is left to areas of interest and common examples. Here are those rules:
1. Wave #2 Cannot Retrace 100% of Wave #1
2. Wave #3 Cannot be the Shortest Wave (but does not have to be the longest)
3. Wave #4 Cannot Enter the Territory of Wave #1 - (This is the important one I see being ignored all over TV)
As noted, I'm not saying I'm absolutely right and we're going to continue heading up but I am saying I have yet to see credible evidence beyond speculation of a necessity to continue down. I do see an ever growing list of Bullish signals and indications this eat dirt theory is less likely, at least for the next couple months. Additionally, keep in mind primary wave 3 up took us 2 years. There's no reason to suspect wave 5 couldn't last as long or even longer. Anything above the pink trend line suggests a Primary wave 5 continuing up.
Something else I've discovered by taking nonsense vomited here in charts and TA by seemingly credible people as fact instead of doing my own research. Lets look at the "investopedia" description of capitulation:
"By definition, capitulation means to surrender or give up. In financial circles, this term is used to indicate the point in time when investors have decided to give up on trying to recapture lost gains as a result of falling stock prices. Suppose a stock you own has dropped by 10%. There are two options that can be taken: you can wait it out and hope the stock begins to appreciate, or you can realize the loss by selling the stock. If the majority of investors decides to wait it out, then stock price will likely remain relatively stable. However, if the majority of investors decides to capitulate and give up on the stock, then there will be a sharp decline in its price. When this occurrence is significant across the entire market, it is known as market capitulation."
A very popular steaming pile of crap here once redefined "Capitulation" as he saw fit. This is pretty toxic as hundreds of thousands of people have since taken this for granted and true (myself included). It's pretty incredible how much influence one popular personality can have on a fledgling market and how misguided statements or outright lies can effect the securities and investments we buy or sell. This is why it's so important to question EVERYTHING you read and hear, no matter what the popularity contest suggests. I've personally had quite enough of the propaganda being spewed all over people giving their trust to TAs of people that sound important. Just remember, the more important they make themselves to be, the less they likely are. Additionally, a TA doesn't include blatantly false statements so easily defunct with a search engine. DYOR
So folks, lets continue objectively watching for the signals and making INFORMED decisions on the conduit we choose to place our faith in achieving our dreams. After all, that's why we're all here right?
1. Wave #2 Cannot Retrace 100% of Wave #1
2. Wave #3 Cannot be the Shortest Wave (but does not have to be the longest)
3. Wave #4 Cannot Enter the Territory of Wave #1 - (This is the important one I see being ignored all over TV)
As noted, I'm not saying I'm absolutely right and we're going to continue heading up but I am saying I have yet to see credible evidence beyond speculation of a necessity to continue down. I do see an ever growing list of Bullish signals and indications this eat dirt theory is less likely, at least for the next couple months. Additionally, keep in mind primary wave 3 up took us 2 years. There's no reason to suspect wave 5 couldn't last as long or even longer. Anything above the pink trend line suggests a Primary wave 5 continuing up.
Something else I've discovered by taking nonsense vomited here in charts and TA by seemingly credible people as fact instead of doing my own research. Lets look at the "investopedia" description of capitulation:
"By definition, capitulation means to surrender or give up. In financial circles, this term is used to indicate the point in time when investors have decided to give up on trying to recapture lost gains as a result of falling stock prices. Suppose a stock you own has dropped by 10%. There are two options that can be taken: you can wait it out and hope the stock begins to appreciate, or you can realize the loss by selling the stock. If the majority of investors decides to wait it out, then stock price will likely remain relatively stable. However, if the majority of investors decides to capitulate and give up on the stock, then there will be a sharp decline in its price. When this occurrence is significant across the entire market, it is known as market capitulation."
A very popular steaming pile of crap here once redefined "Capitulation" as he saw fit. This is pretty toxic as hundreds of thousands of people have since taken this for granted and true (myself included). It's pretty incredible how much influence one popular personality can have on a fledgling market and how misguided statements or outright lies can effect the securities and investments we buy or sell. This is why it's so important to question EVERYTHING you read and hear, no matter what the popularity contest suggests. I've personally had quite enough of the propaganda being spewed all over people giving their trust to TAs of people that sound important. Just remember, the more important they make themselves to be, the less they likely are. Additionally, a TA doesn't include blatantly false statements so easily defunct with a search engine. DYOR
So folks, lets continue objectively watching for the signals and making INFORMED decisions on the conduit we choose to place our faith in achieving our dreams. After all, that's why we're all here right?
Note
To be clear, the tanking to $6k fits the deffenition of "capitulation by and large. Additionally the moves since $6k given scope to BTC's parabolic nature is most certainly something worth considering "stabilized" Just saying
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.