Applying Elliott Wave Theory Profitably with Fibonacci ...

2018 Cryptocurrency Crash (Elliott Wave): Inflection Point

2018 Cryptocurrency Crash (Elliott Wave): Inflection Point
—08-JAN-2018: Elliott Wave,
—12-JAN-2018: Crypto Black Monday,
—24-JAN-2018: Dotcom vs Crypto,
—21-FEB-2018: Bear Market Resumes,
—28-FEB-2018: Halfway Through,
—13-MAR-2018: Fare Thee Well Ten Thousand, #10kNeverAgain:
—19-MAR-2018: Equinox,
—03-APR-2018: April Fools’ Rally,
—19-APR-2018: 420 High,
—25-APR-2018: Symmetrical Triangle,
—06-MAY-2018: Ten Thousand Tease,
—29-MAY-2018: Triangle Phinance,
—10-JUN-2018: Triangle Phinance II,
—23-JUL-2018: Redux,
—02-SEP-2018: #ShortSeptember,
—04-NOV-2018: Inflection Point,
The Bitcoin and cryptocurrency bear market of 2018 has reached a point of inflection, where alternative scenarios and projections can now be explored using Elliott Wave theory.
From the 17-DEC-2017 high to the 06-FEB-2018 low, the Bitcoin market endured a 70% price collapse from the all-time high of $19,891 to a low of $6,000 in just 51 days (BITFINEX). In Elliott Wave parlance, this first phase crash is a simple but sharp three wave a-b-c zigzag pattern.
From the 06-FEB-2018 low, the Bitcoin market then wandered sideways for 168 days until 24-JUL-2018, creating a floor of support at $6,000 whilst making successively lower highs. The psychological $6,000 price has been guarded since it marks support of the psychological USD$100 billion Bitcoin marketcap. In Elliott Wave parlance, this second phase of market development is a triangle pattern consisting of five a-b-c-d-e waves. The internal structure of the waves within the triangle are related to each other in terms of length as the following Fibonacci ratios:
wave-c = wave-a * 0.618 wave-d = wave-b * 0.786 wave-e = wave-c * 0.786
The triangle phase of the Bitcoin market completed at the 24-JUL-2018 high. Since then, the third phase of market has been underway with an expectation of creating new lows for 2018 at sub $6,000 prices. Initial approx targets have been projected as follows (BITSTAMP):
@5920: Fibonacci 0.618% of wave-d low projected from wave-e high. @5220: Fibonacci 0.786% of wave-d low projected from wave-e high. @4327: Fibonacci 0.100% of wave-d low projected from wave-e high. @4200: Fibonacci 78.6% decline of entire Bitcoin market. 
Any of the aforementioned approx price levels based on Fibonacci projections are potential targets of where the 2018 bear market may conclude.
Should price retrace below the Fibonacci 78.6% of the entire Bitcoin market, i.e. below the psychological $4,000 level; it may suggest the bear market extends into 2019 with an expectation of a 90%-95% decline of the entire Bitcoin market to approx $1,000 by 2020. Such a scenario would be consistent with the collapse of other historical asset mania bubble bursts, which typically elapse 2 years on average:
However, the Bitcoin market has reached an inflection point. The third phase of the bear market appears to have stagnated in price and time. Since 09-SEP-2018, price has traded in a narrow 10% range at an average price of $6,400 for almost 60 days thus far. Volatility is now at a 22-month low and technicals such as moving averages are flat-lining across daily timeframes. This behaviour has been quite unexpected. Since completion of the consolidating triangle phase of the market, volume and volatility was expected to breakout. Speculators and traders have left the stabilised cryptocurrency marketplace in favour of the more volatile global equity bear markets.
An alternative scenario can now be considered: Since completion of the triangle at the 24-JUL-2018 high, the concluding phase of the bear market may have declined and truncated at the 11-OCT-2018 low. If so, a cyclical (i.e. short-term) bull market may be commencing within an overall secular (i.e. long-term) bear market. Such a bull market would be termed as a wave-X as part of a complex ongoing long-term bear market structure.
In some schools of Elliott Wave thought, the wave-X bull market may unfold in five 1-2-3-4-5 impulsive waves; or, as three a-b-c corrective waves considered in other schools of thought. Either way, the size of a wave-X is challenging to predict. Typically, it may retrace either a Fibonacci 38.2%, 50%, 61.8% or 78.6% of the entire 2018 bear market; that is approx $11,081 or $12,720 or $14,360 or $16,705 respectively (BITSTAMP). In some cases, a wave-X may extend to, and even exceed prior all-time highs, like typically seen in commodity and forex markets. The wave-X cyclical bull market could be a swift parabolic move elapsing within 12 months during the course of 2019, and thus the overall secular bear market may still resume to unfold to a low in late 2020.
In summary, the parameters of the inflection point can be currently defined as follows, using BITSTAMP prices…
Bear Market Inflection Points
—A break below the 11-OCT-2018 low of $6,055 would be the first indication to suggest the bear market is still underway.
—A break below the 14-AUG-2018 low of $5,880 would confirm the ongoing bear market.
—A break below $4,000 may suggest an extended bear market leading to a 90%-95% collapse of the entire Bitcoin market by 2020.
Bull Market Inflection Points
—A break above the 15-OCT-2018 high of $6,756 would be the first indication to suggest a bull market may be commencing.
—A break above the 04-SEP-2018 high of $7,412 would likely confirm a bull market is underway.
—Bitcoin CBOE XBT futures expiries: 14-NOV-2018, 19-DEC-2018
—Bitcoin CME futures last trade dates: 30-NOV-2018, 28-DEC-2018
—Bitcoin ICE Bakkt daily futures tentative launch: 12-DEC-2018
—S&P500: global stockmarket indices appear to have topped, and a bear market is underway. Expectation is a rally into the end of year 2018 towards $2,800+ in the S&P500 index, followed by a decline to approx $2,400 by Easter 2019 to end the brief equity bear market.
—Gold: rally underway, expectation to conclude at approx $1,260, and then bear market resumes to sub $1,000 by 2020.
—US Dollar: expecting uptrend to be bounded by approx 98, and then bear market resumes.
Elliott Wave models are speculative and indicative of price and structure, not time; i.e. the projections may occur sooner or later than anticipated.
—BTC (Weekly):
—BTC (Daily):
—BTC (4-hr):
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How to Develop a Profitable Bitcoin & Altcoins Daytrading Strategy - Fundamental & Technical Analysis - An Intermediate Tutorial

Abstracted from my blog post. Read the Full Post at: Follow me on Twitter for my latest Bitcoin/Altcoin trading advice @onemanatatime (
Fundamental Analysis
I believe that for an Altcoin to be worth anything at all, it MUST first have technical aspects which are built with the future in mind. This is what solely determines if a cryptocurrency has the potential for the mid to long term. Even with 5 new altcoins launching everyday, you barely see 1 a month that can last even the mid-term.
Then, after that I judge the coins based on 7 mediating factors; developers, community, branding/marketing, popularity/virality, novelty, infrastructure, and liquidity. For more about fundamental analysis and an explanation of these factors, read up on the first few sections in my previous post about picking and trading the next profitable altcoin. In this post, I will focus more on technical analysis and trading strategies instead.
With so many coins out there, I like to use these above factors to weed out all the weaker shitcoins, and focus on altcoins which are substantially different from others, and more importantly, provide more value than other cryptocurrencies. After which, I use Technical Analysis to judge entry/exit positions for trading them.
What else do you think makes a cryptocurrency fundamentally better than another, and more sustainable as a currency?
Technical Analysis
Many will probably agree when I say that the Altcoins market is akin to the "penny stocks" of cryptocurrencies. In this sense, most altcoin markets have much lower liquidity, but have much higher volatility. Since there are over 200 different cryptocurrency markets to date, I prefer to narrow down my list of altcoins to a small handful, and buy under-valued coins or trade the breakouts. You're going to find it really tough to be watching more than 5 altcoins at the same time, so I highly suggest keeping your list small, and adapt your watchlist to the fast changing markets.
If you're new to technical analysis, here's a really good beginner's video on daytrading Penny Stocks, which also explains the basics of chart reading and an introduction to basic trading jargon that I'll be using throughout this post. The important concepts to take note of are resistances & supports, breakouts that coincide with high volume, and the general idea that "what goes up must come down". See video here:
So after you get the basics sorted out, you should be ready to learn how to trade! I'm gonna break this intermediate technical analysis tutorial down into five main portions, and have compiled videos from other trading experts to give even beginners a better overall idea, and teach you all you need to know to devise your own Bitcoin & Altcoins trading strategy.
1. Top Down Analysis
Firstly, lets look at the top down analysis method of reading charts. I always begin by trying to understand the market from a bird eye's view. Compare both charts from a long term period (e.g. 1d) against one from a shorter period (e.g. 15m) to get a holistic view of the market. This will help give you a general perspective of market trends, while peaks & troughs give you an idea of market resistances & supports.
Use these basic resistance & support levels to judge entry/exit prices. In general, previous high and low points are new resistances or support depending on where the price is, and points where u can see big breakouts will be the new short term resistance/support. To get a better idea of what I mean, watch these videos by Jason Stapleton who explains top down analysis, resistances & supports, and structure.
2. Retracements
The concept of retracements is, in my opinion, the most important one that any trading enthusiast must grasp in order to understand how the markets flow. In essence, a retracement is a temporary price movement against the established trend, and helps us understand that the markets move in wave patterns as highlighted by the Elliott Wave Theory. One way to look at it, as highlighted by this video below, is that most price-actions follow a pullback rule to fibonacci retracement levels (38%, 50%, 62%).
The most important concept to take away from this is "what goes up must come down"; that price movements in one direction are always followed by retracements in the opposite direction. Of course, not all movements will follow the same pullbacks, and these levels should only be used as a guide. Here's another video: "Understanding Fibonacci retracement lines:".
So the question then is, how will we know if this counter-movement price action is a retracement or a reversal? There is no way to say for certain...
Read the full post on my blog at:
3. Trading on Volume
Another important concept you need to understand is that large price movements almost always coincide with high trading volume.
With this in mind, this is where the liquidity of an altcoin also comes into play; the higher the trade volume of an altcoin, the lower the spreads, and the more likely you will be able to make some profitable trades from it. In general, the trade volume is a good indicator of, and is proportional to the popularity of the altcoin at the current time.
Apart from the actual trading volume itself, another good indicator is the change in volume over time; if you realize that the trading volume of an altcoin has been steadily increasing over the last few days, it could be an indication that a big price movement is coming up.
4. Breakout Patterns
The last concept I want to share is breakout patterns. Although most people are familiar with this concept, many do not know how to profit from them. This is one of the best tools to use for planning your entry positions, while there are various ways to do so, which are highlighted by these first two videos below:
5. Advanced Trading Strategies
Now comes the fun part: how can we take all that we've learnt so far and put into good use for trading Bitcoin/Altcoins? Here are some pointers for you:
In the next videos, more advanced trading strategies and chart patterns will be shared. These strategies may seem very specific, but my goal is to give you better understanding of how these analysis tools are used, and to give you an idea of how different tools can be used to develop a single trading setup. The specifics are not important; what I hope to achieve is to open up your minds to new ideas, expand your trading knowledge, and ultimately encourage you to explore a diverse variety of trading strategies.
Read up more on some of the main ideas discussed:
Read the full post on my blog at: If you'd like to discuss any ideas or have burning questions, feel free to email me at alvinlee133(at) or hit me up on twitter @onemanatatime.
P.S. If you're new here, make sure to check out my previous posts about Bitcoin & Altcoins daytrading:
P.P.S. If this post helped you, feel free to buy me a cup of coffee!
Cryptsy Trade Key: 9c1e289981a685bf0b8a4e48bc00b35eb1380afa
BTC: 16ka98tnhs9fAjWEXRmEWVrPfTEwmr9orV
LTC: LW4qr8aSfgTwGuU6uvEjnhNKRyJJR9iUbR
submitted by bakedric3 to CryptoMarkets [link] [comments]

How To Combine Elliott Wave And Fibonacci - YouTube Trading the markets with Elliott Wave and Fibonacci  How ... สอน forex : Introduction Fibonacci & Fibo Retracement Technical Analysis: Moving Average, Elliott Wave & Fibonacci Retracements Fibonacci Retracement Tool and Elliott Waves (Part One) Forex Technical Analysis Using Elliot Wave, Harmonic Patterns & Fibonacci! George Hallmey: Applying Elliott Wave with Fibonacci - YouTube

Applying Elliott Wave Theory Profitably with Fibonacci Retracement Levels filters out plenty of fake signals and should increase your win ratio significantly. The Elliott Wave and Fibonacci Retracement levels is wonderful combination of strategies that work well hand in hand. Fibonacci uses particular scientific data points to determine ... Wave 1 The first impulsive wave, which Elliott traders don't use for trading, but rather for analysis of the wave 2. Wave 2 Wave 2 should not retrace below the beginning of wave 1. Normally the retracement is from 50% to 61.8% of Wave 1. At times it can go below the 61.8% due to the fact that wave 2 retracement is quite aggressive since many ... Fibonacci retracement is a popular tool among Elliott Wave practitioners and is based on the key founded by mathematician Leonardo Fibonacci. The most important Fibonacci ratios are 23.6%, 38.2%, 50%, 61.8%, 76.4% and 100%. Determination of right retracement area is based on several things like previous wave structure and market correlation. To draw Fibonacci levels we'll use 2 tools on our MT4 platform: Fibonacci Retracement and Fibonacci Expansion. If you don't see either one in your current MT4 toolbox, use Right click and select "Customize" from the drop down menu, where add all necessary tools. Clicks-by-click Fibonacci application Wave 2. Wave 3. Wave 4. Wave 5 elliott wave fibonacci retracement strategy. TradingView . EN. TradingView. Sign In. Ticker Trading Ideas Educational Ideas Scripts People. Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Dark color theme Sign Out Sign in Upgrade Upgrade now 30-day Free Trial Start free trial Upgrade early. Ideas. Editors ... Trend-Based Fibonacci extension is based on the Elliott Wave Theory. Elliott suggested that the market is cyclical: any growth is followed by a decline, which turns into growth again. According to its wave pattern, the following movements can be distinguished in the market: 5 waves (1-5) in the direction of the main trend, three of which are impulse waves and the other two are corrections. 3 ... The first Elliott wave movement calls for a leading diagonal structure, which made the wave 1 of Intermediate degree. Using the Fibonacci retracement tool, we observe that wave (2) retraces near to 38.2% o wave (1). The wave (3) accomplishes the rule that commands “wave 3 is the largest wave.” In wave (4), we observe that respect the ...

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How To Combine Elliott Wave And Fibonacci - YouTube

Fibonacci Retracement - Where to Enter and Where to Exit - - Duration: 12 ... Harmonic Patterns and Elliott Wave for Forex & Futures - Duration: 1:03:08. iMarketsLive 76,485 views. 1 ... How to use the Fibonacci Retracement tool to find calculated buy zones for a correction of an impulse wave. The .618 level is the highest probability of a price correction, and therefore known as ... With over all of these tutorial videos, you get a detailed education format that will take you from the Forex market basics to the same advanced price action strategies I use daily. Date of issue: 04 May 2010. Speaker: George Hallmey. Elliott Wave is sometimes said to be too confusing and complicated to use as an analysis technique. Howe... Subscribe Learn more about IG: Twitter: Advanced Elliott wave analysis and Fibonacci. Watch, rate and share this video tutorial today. Subscribe to our channel: https://www.Y... ++Forex Elliott Wave Master Class++ แก้ Pain Point การใช้งาน Elliott Wave สำหรับ Forex นับไม่เปน ไม่รู้จะเริ่ม ...