10. Elliott Wave Theory

 

 

 

◆ Before explaining the Elliott Wave

 

 

 

The Elliott Wave is a theory that a person named Elliott analyzed US stock indices for a long time and explained a single wave. A theory that explains a pattern.

 

 

 

 

This is a lagging indicator, and it is not very helpful for actual trading, but wouldn't it be a wave like this when planning a scenario in your head in the future? You can use it at a predictable level.

 

 

 

 

 

◆ Elliot wave pattern

 

 

 

Wave 1) The first rise begins.

 

 

 

Wave 2) The retracement comes at the next Fibonacci ratio.

 

 

 

Wave 3) It rises as the buying trend is attached again, showing a higher rate of increase than Wave 1.

 

 

 

Wave 4) This section is an adjustment section to cool the overheated captain, and the low point is considerably higher than the wave 2 retracement.

 

 

 

 

Wave 5) ends the correction and rises again. The rise shows a smaller rise than wave 3. Since it has risen three times in this way, it is now changing into a downtrend pattern with many taking advantage of it.

 

 

 

 

◆ Don't use Elliot Wave

 

 

 

While the Elliott Wave Theory is very interesting, it is very inappropriate to apply it to trading.

 

 

 

 

It may be suitable for measuring the movement of stock indexes, etc., but if you insist on the Elliott wave in coin trading, you are immediately giving up on the return.

 

 

 

 

◆ If you want to be poor, use Elliot Wave.

 

 

 

 

Even Elliot, author of the Elliott Wave Theory, lived a poor life.