There's a lot of confusion in Bitcoin right now, but the reality is simple: there was a big Elliot wave downward, and now we're in the corrective phase of that wave.
The Elliot wave is not a model or a tool -- it's a psychological phenomenon. It's the product of the behavior of a population of people reacting to an event (or series) and its unfolding. Therefore, it's the way markets move. It's the assertion that markets are moderately predictable because markets are made up of people, and people are predictable. (Events are generally not predictable, however!) It asserts that the market isn't about to move out of step -- an overnight drop to $175 -- unless a major new event occurs.
The following chart is by request. It shows the basic wave count of the major move since August from $620~.
I've used the tools developed by Bill Williams (New Trading Dimensions, Trading Chaos 1&2) to give a basic demonstration of how to count the wave. His methods and tools are the "training wheels" version of wave counting. The main two tools used are THE ALLIGATOR and the AWESOME OSCILLATOR.
TYPO: First five WAVES finished at red-line cross (3 impulse, 2 corrective)
BOOKS: The Wave Principle (Frost & Pretcher), Trading Chaos (both editions--which are very different) (Bill Williams), New Trading Dimensions (Bill Williams)
The Elliot wave is not a model or a tool -- it's a psychological phenomenon. It's the product of the behavior of a population of people reacting to an event (or series) and its unfolding. Therefore, it's the way markets move. It's the assertion that markets are moderately predictable because markets are made up of people, and people are predictable. (Events are generally not predictable, however!) It asserts that the market isn't about to move out of step -- an overnight drop to $175 -- unless a major new event occurs.
The following chart is by request. It shows the basic wave count of the major move since August from $620~.
I've used the tools developed by Bill Williams (New Trading Dimensions, Trading Chaos 1&2) to give a basic demonstration of how to count the wave. His methods and tools are the "training wheels" version of wave counting. The main two tools used are THE ALLIGATOR and the AWESOME OSCILLATOR.
TYPO: First five WAVES finished at red-line cross (3 impulse, 2 corrective)
BOOKS: The Wave Principle (Frost & Pretcher), Trading Chaos (both editions--which are very different) (Bill Williams), New Trading Dimensions (Bill Williams)
