From morning star to evening star

18 ene 2018

This is the perfect example of Elliot waves and candles techniques of technical analysis of price movement of an asset, seen during the BTC correction in January 2018. It started with a nice morning star, then went on to complete a perfect 5 waves impulse cycle followed by another perfect 3 waves correction cycle. After those two waves cycles the price retested a major support and bounced a little higher for a testing of a major resistance level (in this particular case was the declining 30 EMA of the 4 h chart). It can be seen the volume was almost constant during the trade and it could have generated a maximum profit of 31.7% (form bottom of $9222 to top of $12146) in the span of 25 hours.