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Correctionpattern

BTC - Correction - Elliott Wave Principle Hello, I wish to thank you for reading this analysis and I hope that you enjoy it. My original intent when writing this was to show, in detail, the rationale for my position, in clear, easy to understand, layman's terms as I have done many times before. As I worked through everything I came to the decision, that I would instead describe my analysis using the words of Robert Prechter and A.J. Frost, as written in their invaluable text, The Elliott Wave Principle (New Classics Library, 1978). All excerpts from the book will be marked in quotations, followed by citations of page (pp.) and paragraph (par.) from which it was sourced. In this way, with a copy of the text one could follow and/or provide feedback in the case that I overlooked something. With that I begin with a quote from the Practical Application section of the book: "Despite the fact that many analysts do not treat it as such, the Wave Principle is by all means an objective study, or as Collins put it, "a disciplined form of technical analysis." Bolton used to say that one of the hardest things he had to learn was to believe what he saw. If you do not believe what you see, you are likely to read into your analysis what you think should be there for some other reason. At this point your count becomes subjective and worthless. How can you remain objective in a world of uncertainty? It is not difficult once you understand the proper goal of your analysis. Without Elliott, there appear to be an infinite number of possibilities for market action. What the Wave Principle provides is a means of first limiting the possibilities and then ordering the relative probabilities of possible future market paths." (pp.94-95, par. 4-1) I am inherently neither Bull nor Bear; I believe what the chart shows me and express my analysis as such, whether that be Bullish or Bearish, it is what I see and I believe what I see. --------------------------------------------------------------------------------------------------------------------------- "The single most important rule that can be gleaned from a study of the various corrective patters is that corrections are never fives. Only motive waves are fives. For this reason, an initial five-wave movement against a a larger trend is never the end of a correction, only part of it." (pp.41, par. 2) "Sharp corrections angle steeply against a larger trend." (pp.41, par. 3) This Daily candle chart shows my preferred count for the entire BTC Correction that began in December 2017. It can be seen that the Correction began with a steep, declining, Motive 5-Wave that took the price from All Time High to 5811. As plotted my count is an ABC, 5-3-5 formation, zigzag. "... diagonal occasionally appears in the wave 1 of impulses and in the wave A position of zigzags...A leading diagonal in the wave 1 position is typically followed by a deep retracement." (pp.40, par. 2) A closer look at the 6 hour chart shows that the correction began with a leading diagonal for wave 1 down; the 18 hour chart below this also shows that diagonals have been common during the Correction. "The A wave sets the tone for the B wave to follow. A five-wave A indicates a zigzag for wave B..." (p.81, par.2) My count shows that wave B was a zigzag from 5811 to 11800... "Within impulses, second waves frequently sport zigzags, while fourth waves rarely do." (pp.42, par. 3) Primary wave 2 of A and wave 2 of C are zigzags.
COINBASE:BTCUSDLong
by BTCookieMonster
22