Hey Keifer! I haven't studied EWTheory yet (but just acquired The Elliot Wave Principle ebook), so perhaps you could answer a question for me? For the upcoming 'C' correction, is there anything in EWT that indicates the magnitude of the drop? I've seen different EWT analyses with different estimates: Some crazy low to 1k and others to 7k. Thanks for your analyses -- always interesting!
keifer
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@waterslide,
Yes, I am aware of the 1k area which is based upon the parabolic ABC correction. There is doubt that a 1k bottom will happen but nobody can predict that.
I try to live in the real world and use fibs with current price action. So I have on this chart fib retrace of the 3rd wave as 61.8 or 78.6 of the 3rd wave, BTC likes to deep retraces on the 3rd wave and it wouldn't surprise me if we see 90% retrace. However, it cannot enter into and close in wave 1 price territory or this EWT is void and a new TA would have to be done.
Further confluence is the standard ABC correction where C wave is 1.618% of A wave taken from the top of B wave. Here we see basically the same area of this correction whether it is as seen on the chart above as a retrace ( as mentioned) from the 3rd wave or a measured ABC correction for wave 4 of the 3rd wave.
This chart shows the measured ABC correction.
keifer
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@waterslide, FYI on EWT standard Fibs.
Wave 2 – 50.0%, or 61.8% of Wave 1.
Wave 3 – 161.8%, 261.8% of Wave 1
Wave 4 – 38.2%, 50.0%. 61.8 of Wave 3
Wave 5 – 100% of Wave 1 or 161.8% of Wave 4.
Wave A – 161.8%, 100%, 61.8%, or 50.0% of Wave 5.
Wave B – 50.0%, 61.8 of Wave A.
Wave C – 100% or 161.8% of Wave A, or 161% of Wave B.
waterslide
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@keifer, Thank you for all the great information! I'm going to have to come back here and re-read this after digesting a EWT book. I really appreciate you taking the time to answer my question(s)!
I expect BTCUSD price to move slightly up today, supported by RSI (4hr) and CCI (4hr). The analysis is based on 28 technical indicators, on 4hr chart. Do share your thoughts :)
You think it is still valid