ETH/USD Wave 1 Completion, Wave 2 Correction, No Wave 3 analysis
This analysis is conducted using the Elliott Wave Theory and Fibonnaci Ratios.
I am writing this as detailed as possible.
Every Impulsive cycle consists of 5 wave expansion in the direction of the trend, as can be seen here, 4/5 legs are completed, as Wave 4 will complete today, which would result in another push in upward direction which will change the market price to 890 in the following days, after successful completion of lower degree waves marked as (1)-(4), a completion of the last leg is expected which as said would happen at 890 price level, which would complete a higher degree of wave marked as 1.
Naturally a correction is expected, Wave 2, which would consist of 3 legs in a counter-trend direction, major levels to be looked are the 38.2% , 50% and 61.8% , the price targets are 38.2% = 683$ , 50% = 621$ and 61.8% = 556$
I would advise, under no circumstances to trade Wave 2 and Wave 4, due to the basic trading principle "Never go against the trend", as the trend is bullish, and those retracements are mere pullbacks. This is strictly analysis on what to expect in the upcoming days. However if you decide to trade it, a suggestion about open,exit and SL is provided below.
As Wave 2 normally retraces around the ratios mentioned above, the safest approach is as marked on the template here, open a short position at the 760 price level, stop loss at the high of wave 1 or a little bit higher depending on your risk tolerance, an exit should be taken at 50% or 61.8% depending yet again on your risk tolerance.
Additionally this is a short-term analysis, I want to highlight that this is a bull market cycle, which has just begun, this is analysis for the correction after wave 1, after wave 2 another surge in market price will follow, this is simply a weekly analysis.
PS: As said, I would not advise on trading the pullbacks, and I can not be held liable if you wipe your account. This is pure analysis on what I expect on happening within the next few days or for the period of 07.05.2018 - 14-16.05.2018.
I am writing this as detailed as possible.
Every Impulsive cycle consists of 5 wave expansion in the direction of the trend, as can be seen here, 4/5 legs are completed, as Wave 4 will complete today, which would result in another push in upward direction which will change the market price to 890 in the following days, after successful completion of lower degree waves marked as (1)-(4), a completion of the last leg is expected which as said would happen at 890 price level, which would complete a higher degree of wave marked as 1.
Naturally a correction is expected, Wave 2, which would consist of 3 legs in a counter-trend direction, major levels to be looked are the 38.2% , 50% and 61.8% , the price targets are 38.2% = 683$ , 50% = 621$ and 61.8% = 556$
I would advise, under no circumstances to trade Wave 2 and Wave 4, due to the basic trading principle "Never go against the trend", as the trend is bullish, and those retracements are mere pullbacks. This is strictly analysis on what to expect in the upcoming days. However if you decide to trade it, a suggestion about open,exit and SL is provided below.
As Wave 2 normally retraces around the ratios mentioned above, the safest approach is as marked on the template here, open a short position at the 760 price level, stop loss at the high of wave 1 or a little bit higher depending on your risk tolerance, an exit should be taken at 50% or 61.8% depending yet again on your risk tolerance.
Additionally this is a short-term analysis, I want to highlight that this is a bull market cycle, which has just begun, this is analysis for the correction after wave 1, after wave 2 another surge in market price will follow, this is simply a weekly analysis.
PS: As said, I would not advise on trading the pullbacks, and I can not be held liable if you wipe your account. This is pure analysis on what I expect on happening within the next few days or for the period of 07.05.2018 - 14-16.05.2018.