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Bitcoin Elliott Wave Signals Potential Corrective Phase TargetsLooking at the recent BINANCE:BTCUSDT chart through the lens of Elliott Wave Theory, we can observe a clear and compelling price structure. The market has completed a textbook Impulse Wave pattern (1-5), with Wave 5 reaching a notable peak around 109,000 USDT. This aligns perfectly with Elliott Wave principles, where Wave 5 typically extends beyond the peak of Wave 3, which is exactly what we witnessed. The market has now transitioned into a Corrective Wave pattern (A-B-C). We've already witnessed the completion of Wave A's downward movement, followed by Wave B's characteristic short-term rebound. Currently, price action suggests we're in Wave C, which traditionally implies further downside potential. Particularly noteworthy are the three projected target levels for Wave C: 87,847 USDT 82,270 USDT 66,149 USDT These targets align beautifully with Fibonacci retracement levels, a tool that consistently demonstrates remarkable synergy with Elliott Wave Theory. The lowest target at 66,149 USDT could represent a significant base formation, especially if selling pressure intensifies in response to market conditions. The chart's notation of "Wave(C) OnSet" is significant, indicating we're entering the initial phase of Wave C. This wave could potentially extend to any of the three target levels in the near term. As the price approaches these projected levels, we might see the emergence of a new bullish cycle. I anticipate that if the BTC price drops below 90k, the significance of the Corrective wave (C) across all three levels will become even more pronounced. This could indicate substantial selling pressure, making any potential recovery in the upcoming period more challenging. However, prudent analysis requires careful attention to support level confirmations and corresponding trading volumes at each target. In practical trading scenarios, price movement doesn't always reach the lowest projected targets. Wave C might be truncated, or conversely, could extend beyond our projections. This underscores the importance of incorporating additional technical analysis tools to form a comprehensive trading strategy. This wave structure presents an intriguing setup, and it will be fascinating to observe how price action develops in relation to these projections. Remember that successful trading requires a holistic approach, combining wave analysis with other technical indicators and careful risk management.
by hapharmonic
DreamAnalysis | Technical Analysis Dow Theory EP03📚 Welcome to the Educational Content Section of Our Channel: Technical Analysis Training 👋 Recap of the Previous Session: In the previous session, we covered the middle two principles of Dow Theory. Make sure to review and study them, and if you have any questions, feel free to reach out to us in the comments. 📖 Today’s Focus: Let’s dive into Principles 5 & 6 of Dow Theory and explore their significance in market analysis. 🎨 What is Technical Analysis? Technical analysis is more of an art than a science. Just like art, there is no definitive right or wrong. Instead, we create rules based on experience to navigate the lawless market. Patterns in life can reflect in the markets, but we must always approach it with an artistic perspective. 📑 Principles of Dow Theory: 1 - The Averages Discount Everything (Not applicable to crypto) 2 - The Market Has Three Trends 3 - Trends Have Three Phases 4 - Trends Continue Until a Reversal is Confirmed 5 - The Averages Must Confirm Each Other 6 - Volume Confirms the Trend 📊 Principle 5: Volume Confirms the Trend Typically, when the price moves in the direction of the main trend, the trading volume increases. The same applies to bearish trends, where declining prices are supported by increasing sell volume. Low volume suggests weakening momentum. For example, in a bull market, buying volume should rise with the price, and during corrections, volume should remain steady. 📉 However, if volume increases during a correction, it may signal that more investors are turning bearish on the asset. Therefore, volume acts as a crucial indicator of the strength or weakness of a trend. 📉 Principle 6: Trends Continue Until a Reversal is Confirmed 🔄 Dow Theory emphasizes that trends continue until a clear reversal signal is observed. This means that despite short-term fluctuations or corrections, the primary market trend remains intact until there is unmistakable evidence of a change in direction. 🚩 It’s important to distinguish between temporary corrections and true trend reversals. Misinterpreting short-term declines in a bull market or temporary rallies in a bear market can lead to confusion and poor decision-making. 🎯 Conclusion: This concludes our breakdown of the 6 principles of Dow Theory. In the next session, we will review and summarize the entire Dow Theory to solidify your understanding. 📝 Important Note: These principles were developed over 100 years ago, and with today’s diverse markets, there are many different perspectives on their application. ⚠️ Please remember that these lessons represent our personal view of the market and are not financial advice. Always do your own research before making investment decisions.
Education
by DreamAnalysis
DreamAnalysis | Technical Analysis Dow Theory EP02📚 Welcome to the Educational Content Section of Our Channel: Technical Analysis Training 📚 Recap of the Previous Session: In the previous session, we explained the first two principles of Dow Theory. Make sure to review and study them, and if you have any questions, feel free to reach out to us in the comments. 📖 Today’s Focus: Principles 3 & 4 of Dow Theory Now, let’s dive into Principles 3 and 4 of Dow Theory and explore them together. 🎨 What is Technical Analysis? Let’s talk a bit about technical analysis and patterns in life. Technical analysis is not a science; rather, it is an art. Therefore, there is no right or wrong in art. Instead, we apply rules we have created through experience in this lawless market. 📑 Principles of Dow Theory : 1 - The Averages Discount Everything (Not applicable to crypto) 2 - The Market Has Three Trends 3 - Trends Have Three Phases 4 - Trend Continues Until a Reversal is Confirmed 5 - The Averages Must Confirm Each Other 6 - Volume Confirms the Trend 📊 Principle 3: Three Phases in Every Trend According to Dow Theory, each major market trend is divided into three distinct phases: 1️⃣ Accumulation In this phase, large and informed investors begin buying or selling assets at favorable prices. These groups consist of individuals and institutions with significant knowledge and financial resources, often acting contrary to the majority of the market. While most market participants may not yet notice price changes, these informed investors are positioning themselves to benefit from future market movements. 2️⃣ Public Participation At this stage, most investors start recognizing the trend and begin participating in the market. The trend accelerates as public attention increases, and new capital flows in. This phase is typically characterized by a sharp rise in prices during a bull market or a sharp decline during a bear market. 3️⃣ Excess or Fear In this phase, participants jump into trades out of fear of missing out on profits or due to panic over further losses. This phase often signals the nearing end of the major trend and is usually followed by a reversal or change in trend direction. 💡 Principle 4: Different Indexes Must Confirm Each Other This principle states that the overall market trend must be confirmed by various indexes. It means that a bullish or bearish market trend can only be considered valid if other key indexes are moving in the same direction. 🔍 Example: To confirm a bullish market in a country like India, all major indexes, such as Nifty, Sensex, Nifty Midcap, and Nifty Smallcap, should be moving upward. 📝 Important Note: These principles were developed over a century ago, and it is natural that with today's diverse financial markets, there are varying views on their application. ⚠️ Please remember that these lessons represent our personal view of the market and should not be considered financial advice for investment.
Education
by DreamAnalysis
1
DreamAnalysis | Technical Analysis Dow Theory EP01📚 Welcome to the Educational Content Section of Our Channel: Technical Analysis Training We aim to produce educational content in playlist format that will teach you technical analysis from A to Z. We will cover topics such as risk and capital management, Dow Theory, support and resistance, trends, market cycles, and more. These lessons are based on our experiences and the book The Handbook of Technical Analysis, as well as our learning and insights from the Trade City Pro channel. 🎨 What is Technical Analysis? Let’s talk a bit about technical analysis and patterns in life. Technical analysis is not a science; rather, it is an art. Therefore, there is no right or wrong in art. Instead, we apply rules we have created through experience in this lawless market. 📊 Introduction to Dow Theory : Today, for the first part of our lessons, we will begin with Dow Theory, which was developed by American journalist Charles Dow. Many traders still use this method for analysis and trading. 📑 Principles of Dow Theory : 1 - The Averages Discount Everything (Not applicable to crypto) 2 - The Market Has Three Trends 3 - Trends Have Three Phases 4 - Trend Continues Until a Reversal is Confirmed 5 - The Averages Must Confirm Each Other 6 - Volume Confirms the Trend 💵 Principle 1: Price is All You Need Dow's theory operates based on the "Efficient Market Hypothesis," which assumes that the price of assets reflects all available information. In other words, this approach contrasts with behavioral economics. Factors like earning potential, competitive advantage, management competence—all are accounted for in the price, even if individuals do not know all the details. In more precise readings of this theory, even future events might be reflected in the current market price. 📊 Principle 2: The Market Has Three Types of Trends According to Dow Theory, price movements in the market are trend-based, and these trends can be divided into three types: 1 - Primary Trend: This is the main movement of the market, dictating the long-term direction, and can last for years. 2 - Secondary Trends: These are corrective movements that run opposite to the primary trend. For instance, if the primary trend is bullish, the corrective trend will be bearish. These trends can last from weeks to months. 3- Minor Trends: These are the daily price fluctuations in the asset. Although minor trends can last for weeks, their direction will always align with the primary trend, even if they contradict the secondary trend. 💡 Final Thoughts for Today : This is the end of this part, and I must say we have a long journey ahead. We will continually strive to produce better content every day, steering clear of sensationalized content that promises unrealistic profits, and instead, focusing on the proper learning path of technical analysis. ⚠️ Please remember that these lessons represent our personal view of the market and should not be considered financial advice for investment.
Education
by DreamAnalysis
1
NZDUSD - Technical Analysis [Long Setup]🔹 NZDUSD Analysis on 1HR chart - The current Trend is Bullish - Bullish Divergence is Present - No Reversal pattern - Waiting for a Break of Structure for Confirmation 🔹 Trade Plan - Entry Level = 0.61647 - Stop Loss = 0.61072 - TP1 = 0.62223 - TP2 = 0.62802 🔹 Risk Management - First TP is 1:1 - Second TP is 1:2 🔹 How to Take Trade? - Only risk 2% of your portfolio - Take 1% risk entry with 1:1 RR - Take 1% risk entry with 1:2 RR Like and subscribe to never miss a new idea! ✌🏼
Long
by Bountysoul