Testing/tracking elliot wave theory. Please do not trade off idea without S/L. Not financial advice.
Timeframe is on the daily. This chart is a bit sloppy cause there's a lot going on. We still aren't clear on which way Ethereum will go, but we have a bit more data. Before looking at this chart, I want you to look at the previous one.
If you look at the previous chart, you'll see that I have a wave 4 retracement going down to 500-700 range. This chart is still showing a possible leg down to that same area; WXYXZ correction. Last chart was on the weekly, this one is on the daily. I am zooming in on price action for you here.
On this chart I am showing you a ABC retracement, followed by a new impulse wave. Wave 1 and wave 2 are in. Currently we are working towards wave 3 ( assuming we have a new impulse wave trend started ). If we have a new impulse wave starting then it should follow something like the wave 1-5 shown in here.
We can confirm this is true when we have a break above the blue resistance line. A break above the blue resistance line means we've completely broken out of the downtrend channel. This is super bullish and helps confirm that we're on a wave 3 impulse.
This WXYXZ retracement becomes invalid if the green X goes above the ABC retracement.
The 200,100,50,20 day MA are all closing in (The end is near).
Timeframe is on the daily. This chart is a bit sloppy cause there's a lot going on. We still aren't clear on which way Ethereum will go, but we have a bit more data. Before looking at this chart, I want you to look at the previous one.
If you look at the previous chart, you'll see that I have a wave 4 retracement going down to 500-700 range. This chart is still showing a possible leg down to that same area; WXYXZ correction. Last chart was on the weekly, this one is on the daily. I am zooming in on price action for you here.
On this chart I am showing you a ABC retracement, followed by a new impulse wave. Wave 1 and wave 2 are in. Currently we are working towards wave 3 ( assuming we have a new impulse wave trend started ). If we have a new impulse wave starting then it should follow something like the wave 1-5 shown in here.
We can confirm this is true when we have a break above the blue resistance line. A break above the blue resistance line means we've completely broken out of the downtrend channel. This is super bullish and helps confirm that we're on a wave 3 impulse.
This WXYXZ retracement becomes invalid if the green X goes above the ABC retracement.
The 200,100,50,20 day MA are all closing in (The end is near).
Comment:
Risk/Reward Ratios
Comment:
If you go back to the previous chart of Eth on the weekly, you've already lost 2x potential gain if you did not go grab some back when I first posted it.
Previous chart R/R ratio: 14.2
Potential upside 700%
downside -49%
From today's price your R/R ratio is 5.8
Potential upside 382%
Downside -65%
We've already gone through a -82% drop from the top. if we go down to the Z wave that's a -85% drop. These are great levels to DCA at regardless of the potential drops we may have because it won't go much lower. The potential gains to the upside exceeds the small risk of the downside. As we continue to go higher, you're risking more. If we ever go back to 1k levels, consider yourself lucky.
Previous chart R/R ratio: 14.2
Potential upside 700%
downside -49%
From today's price your R/R ratio is 5.8
Potential upside 382%
Downside -65%
We've already gone through a -82% drop from the top. if we go down to the Z wave that's a -85% drop. These are great levels to DCA at regardless of the potential drops we may have because it won't go much lower. The potential gains to the upside exceeds the small risk of the downside. As we continue to go higher, you're risking more. If we ever go back to 1k levels, consider yourself lucky.
Comment:
If you can read this chart, awesome, you're probably winning.
If you can't understand this chart, take the time to analyze it. I'm not gonna explain it to you because it's self explanatory.
If you can't understand this chart, take the time to analyze it. I'm not gonna explain it to you because it's self explanatory.