I have been tracking a potential triangle forming on BTCUSD over the past few days. Last night's dip and support on the (a)-(c) trendline is confirming my thoughts on this. Triangles are common patterns to see before the final move of one larger degree in Elliott Wave Theory. The thought here is that we have yet to complete an ABC zigzag up, and are currently gearing up for wave circle C. I am currently targeting the $6900-$7050 levels. See the linked posts below for my macro view, which has been my primary count for the past few months. I am currently looking to play a scalp long before re-loading on my shorts for the final decent. (I am short-term bullish)
*THIS IS NOT TRADING ADVICE*
*THIS IS NOT TRADING ADVICE*
Comment:
Lastly, we should not expect to see any higher than $7500 (the 1.618 fib), if so than I would re-evaluate my count although this would not mean invalidation per se.
Comment:
(last update for now, I promise)
One possibility I forgot to add is that this triangle could be wave (b) of circle B of a flat ABC. In which case we would expect a 90%-138.2% retrace of wave circle A. The main reason I am watching this possibility is because wave circle A could be interpreted as a three wave ABC rather than a 5-wave which would indicate a zigzag.
One possibility I forgot to add is that this triangle could be wave (b) of circle B of a flat ABC. In which case we would expect a 90%-138.2% retrace of wave circle A. The main reason I am watching this possibility is because wave circle A could be interpreted as a three wave ABC rather than a 5-wave which would indicate a zigzag.
Comment:
Looks like it was the red count.
-It is common for E waves to either overthrow or under-throw the A-C trend-line, as we saw last night with a slight overthrow.
-Stop losses can be set below the lows of waves (a) and (c) and even below the low made last night for a more conservative stop.