ETH-Fibonacci/Wave Analysis-Primary 5th
Updated
ETHUSD has bottomed and is building support to go higher. We are now beginning Primary Wave 1. ETH has been in a bear market correction since reaching highs in January 2018. ETH bottomed at approx. $167.00. Primary Wave 1 has completed sub-waves 1, 2, 3, and the 4th is ending now. Primary Wave 1 appears to be making a leading Diagonal Triangle.
Remember the rule which says that wave 4 in an impulse wave cannot overlap the top of wave 1? Well, there is one exception to this rule. Every now and then, either wave 1 or wave 5 will take the shape of a wedge. Elliott has called this formation a Diagonal Triangle. A diagonal triangle differs from a regular (horizontal) triangle in that it slopes in the direction of the trend. So when the eventual break out happens, the next move will be in the opposite direction. There are two main types of diagonal triangles. One is where the two boundaries of the triangle converge and the other where they diverge. The second type is known as Expanding Diagonal Triangles. Irrespective of whether they are converging or expanding diagonal triangles, if they occur in the first wave position, where they are known as ‘leading diagonal triangle’, the internal waves are made up of 5-3-5-3-5 sub waves. If they occur in the fifth wave position, they are known as ‘ending diagonal triangles’ and the internal waves are made up of 3-3-3-3-3 sub waves.
Analysis Method: Fibonacci + Elliot Wave
Monthly Chart:
- Retrace
Wave 1: +6,933.10% (Extended)
-$5.86-$412.21
-Fib. Ext. 0-3-4 = 1
Wave 2: -66.98%
-$412.21-$136.12
Wave 3: +534.00% (Normal)
-$136.12-$863.00
-Fib. Ext. 1 & 2 = <1.618
Wave 4: -42.99%
-$863.00-$492.01
Wave 5: +189.49% (Extended)
-$492.01-$1424.73
Correction
-Wave A: -74.86%
-Wave B: +134.08%
-Wave C: -80.03%
The Bottom:
Primary Wave 1:
S1: Normal
S3: Normal (Normal but shorter than Wave 1 which violates Elliot's Law except for Diagonal Triangle)
S5: Set for Extension?
3HR:
6HR:
Wave 5 Target:
Target $344.18
Will update.
-AB
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Look for Higher Degree Wave 1 to extend.Comment
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Sub-Wave 1 ExtendedComment
The move we been waiting for is coming up!Comment
BOOM!Comment
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Above: ETH is trying to breakout of the leading diagonalTrade closed: target reached
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