MATH - This is how you REALLY use Elliott WaveThis is a great example of a beautiful setup and how to lay out a low risk, high reward trade, especially for those that are still learning and wondering how to apply Elliott Wave. Or maybe you are unfamiliar with Elliott Wave or someone who thinks it's nonsense. Well let me show you how I do it and hopefully help you learn the best technical strategy. These are the setups I salivate on. And I don't care if I lose 8 out of 10, because the 2 that hit will more than pay off the losers.
Support box is clear. Below the September low and I'd be out as we'd be below the reliable 61.8% retracement. Breaking that fib retracement level means that it can do anything from bullish, to diagonal, to sideways, to bearish moves. And we don't want to waste our time with stocks that aren't trending. Nothing is reliable anymore - therefore, we don't want to trade it below that. Toss it away. Move on to the next one.
For this play, you could accumulate shares under $2.25 which is the previous high. I have it labeled as a Wave (1) but it could easily just be an (A) wave. As a quick refresher, trending impulsive moves happen in 5-wave moves. Since we don't know for 100% certainty that this will become that, we have to prepare for the other likely scenarios. We are already protected from significant downside with our stop below the 61.8% retracement, so I just don't care what might happen in a bearish count. So for bullish, I want to accumulate under the last high and catch the breakout. Once broken out, minimum target is $4.25. That's the 100% extension of (1) from the bottom of (2), the first resistance. If this ends up being a 3-wave (A)(B)(C), it would top out there at the 100%, so we want to make sure we have all of our money back by then. A full bullish follow through could take it anywhere between $12 (161.8% fib) and $22.50 (200% fib, which is where a standard impulsive 5-wave rally is expected to end with no extensions).
If you buy a stock like this with stop below the 61.8%, you can go net free (return of original equity) by selling however many shares are needed to get your original money back at the previous high around $2.25 which should reject at first try (as it is the most likely landing spot for Wave 1 inside of Wave (3). Once a higher low forms from there (Wave 2 of (3)) between $1.20 and $1.75, you could go in even harder, buying more shares, and moving your stop on all shares to that higher low, providing a very low risk scenario. By the time $4.25 is hit, you should be completely net free with plenty of shares left and maybe even take some good profits.
Remember, this is an outline NOT A PREDICTION. That's why we have a stop, a plan, and multiple targets. As it plays out, we gain more clarity and update our outline. Probably even find a trend channel. This is Elliott Wave. This is Fibonacci Pinball (the creation of Avi Gilburt at elliottwavetrader,net). It's not telling you what's going to happen. It's telling you what could happen, laying out the most probable path, limiting your risk, and telling you when it might be wrong and how to pivot. And don't go thinking this will happen all at once. Keep good notes of your entry and all sales. This likely takes 1-3 years.
Standard disclosures:
1. This is 100% my idea. It was not sourced from any other avenue.
2. I am not invested in this company, though I am likely buying shares soon.
3. I am not paid to post content nor do I receive any contributions of any kind.
4. While this is outlining a potential profitable setup, this article is not investment advice. You should do your own due diligence on any company you invest in and apply your own trading strategies.
5. I know nothing about the fundamentals of this company. I suggest doing your due diligence if fundamentals are important to you.
6. Readers should always remember that markets are their own creature made up of millions of individuals and institutions each following some combo of inherent bullishness, inherent bearishness, fundamentals, technicals, stupidity, and pure emotion. Elliott Wave, and specifically Fibonacci Pinball (developed by Avi Gilburt at elliottwavetrader.net and prominent Seeking Alpha author), merely provide a framework based on the observed price action to date. 7. I know that while my wave outline is based on years and years of data and application from not only me, but some of the best in the game, I also know that markets do not follow a set path and that sentiment can remain irrational far longer than I can remain rational. That is why you MUST consider the alternatives and manage risk appropriately. Know the pivot zones that could lead to the primary path failing.
I warrant that the information created and published by me on TradingView is not prohibited, doesn't constitute investment advice, and isn't created solely for qualified investors. My analysis is not a recommendation for a specific trade. My analysis outlines a potential scenario and provides risk assessments for multiple alternate scenarios. My analysis is purely educational.
EW
ELLIOTT WAVES CHEAT SHEET 🏄♂️ 10 RulesHello, here is a cheat sheet for Elliott Waves for top 10 Rules, so you can print this out and keep on your desk.
The Elliott wave principle is a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott (1871–1948), a professional accountant, discovered the underlying social principles and developed the analytical tools in the 1930s. He proposed that market prices unfold in specific patterns, which practitioners today call Elliott waves, or simply waves. Elliott published his theory of market behavior in the book The Wave Principle in 1938, summarized it in a series of articles in Financial World magazine in 1939, and covered it most comprehensively in his final major work, Nature's Laws: The Secret of the Universe in 1946. Elliott stated that "because man is subject to rhythmical procedure, calculations having to do with his activities can be projected far into the future with a justification and certainty heretofore unattainable." The empirical validity of the Elliott wave principle remains the subject of debate.
My Impulse Channeling techniques!If you find this info inspiring/helpful, please consider a boost and follow! Any questions or comments, please leave a comment!
Well they are not mine, just some techs
I use when dealing with impulses.
A bit of KCT.
A bit of Elliott wave and Elliot wave
All consistently used in my analysis.
If helpful, throw me some love and
I'll post some techs on channeling corrections.
Cheers!
Two Types of Elliot Wave CorrectionsWhen it comes to Elliot Wave Theory, we know of two different correction patterns .
On the left you can see the classic correction, which is less common in real market situations. On the other hand, the flat correction (right) occurs more frequently in the market, since modern price action is often characterized by fakeouts . In this case, a fakeout looks like a wave B making a new high above wave A. In most cases, traders would open a trade here due to a structural break, which then runs against them (bull or bear trap).
In the following table you can see how the respective correction patterns differ from each other and what you need to pay attention to.
It is very important that you learn how to use Fibonacci tools correctly so that you can calculate the wavelength properly. Maybe I'll do a separate educational post on the proper use of those tools in future.
Thank you very much for your attention,
Your RT
🌊 ELLIOTT WAVES CHEAT SHEET 🌊10 Rules to 🏄♂️ them all! Hello, You may have never heard of Elliott Wave Theory before! Here is a cheat sheet for Elliott Waves for top 10 Rules, so you can master them all! print this out and keep on your desk.
How do you read Elliott waves?
The Elliott Wave Theory is interpreted as follows: Five waves move in the direction of the main trend, followed by three waves in a correction (totaling a 5-3 move). This 5-3 move then becomes two subdivisions of the next higher wave move (fractal).
The Elliott wave principle is a form of technical analysis that finance traders use to analyze financial market cycles and forecast market trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors. Ralph Nelson Elliott (1871–1948), a professional accountant, discovered the underlying social principles and developed the analytical tools in the 1930s. He proposed that market prices unfold in specific patterns, which practitioners today call Elliott waves , or simply waves. Elliott published his theory of market behavior in the book The Wave Principle in 1938, summarized it in a series of articles in Financial World magazine in 1939, and covered it most comprehensively in his final major work, Nature's Laws: The Secret of the Universe in 1946. Elliott stated that "because man is subject to rhythmical procedure, calculations having to do with his activities can be projected far into the future with a justification and certainty heretofore unattainable." The empirical validity of the Elliott wave principle remains the subject of debate.
OpenSea version in signature below
Sugar Futures long by Elliott Wave Theory.All description on the chart.
Please, don't forget to like and follow.
Thank you.
BTCUSD in the Bitmain Board Bomb: Bitcoin Bulls BatteredBitmain Board Bomb
this is Speculation Utter not Accusation.
this is Disclaimer Replete any Assertion.
this is Analysis of Events as Causation.
Nothing More.
Bitmain was Born with Bitcoin, it thrived in the Bubble.
Bitmain has Lost much Money, it conspired in some Rubble.
Bitmain has Lost its very Head, it has acquired Trouble.
the Board is moving People and Powers.
the Board is closing Mines and Miners.
the Board is losing Faith and Followers.
it was to be the Apple of all Crypto.
it was to be the I P O of the Decade.
it was to be the King of all Kings.
Jihan was the Man, the man with the Plan.
Jihan met Ver, other man with other Plan.
Jihan bet BCH, other coin with new Plan.
Jihan lost his Job, Ver lost his Bet.
now they say Bitmain has much Debt.
now they say Bitmain cant pay Bills.
now they say Bitmain might not IPO.
the Bomb was surely Inevitable.
the Bomb hit during Unstable.
the Bomb will be Memorable.
so some Investors pulled their Fare.
so some Traders pulled their Hair.
so some Brokers pulled their Tear.
the News made the Impulse.
the Splash made the Ripples.
the Time made the Waves.
we can see the 123 and 4
we can expect soon the 5
we have a Last Line of Hope.
but we need a New Reason for Return.
cuz we know Those Bulls cant Return.
thus we wait the Return of the King.
Long Live the King
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Ordered Chaos
every Move is born with an Impulse, like a Pebble into water.
every Pebble bears its own Ripples, guided by a Golden Ratio.
every Ripple behaves like the one previous, setting the Pulse.
each Line adds to Gravity.
each Line must be Tested.
each Line has some Aspect.
2 line conjunction is Dependable.
3 line conjunction is Respectable.
4 line conjunction is Worshipable.
every Asset Class behaves this way.
every Time Frame shows these ripples.
every Brain Chord vibrates the same.
He who Understands will be Humble.
He who Embraces will observe Order.
He who Ignores will behold only Chaos.
Ordered Chaos
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want to Learn a little More?
can you Spend a few Minutes?
click the Links under Related.
Elliot Wave GuideI am NOT and Elliot Wave expert.
Just wanted to put this out as my first ''Educational'' Idea.
Will update with further thoughts after posting.
