Examining pennant & flat correction possibility (revised)
Some errors in Elliott count were addressed. No substantial change in the conclusion.
In the previous ideas, we examined bearish possibilities.
BTC 1H Short-trading idea
Going to form a Bearish Flat?
BTC in compression
Where is the top of the Inverse H&S-like structure?
First of all, this analysis is coherent with the above scenarios.
So we may have a short position from around 17390, or we could make entry at 17200, 17400-17650, while recommended SL is over 17800 (manage your own risk).
Although arguably BTC is in compression, the bearish movement will likely resume - let's check this hypothesis.
I laid out a tapering pennant to measure the price conversatio.
(i) Corrective Wave of Elliott wave theory
Although there are a variety of corrective waves in EW theory, a flat would fit most appropriately for our presupposition.
A flat correction wave comprises three waves, having 3, 3, and 5 minor wave structures, respectively.
Wave A was an irregular correction, and wave B was a typical zigzag with a steep decline.
Then wave C. Is this complete? Let's see in deep.
(ii) Examining the current formation
Waves B and C shaped a beautiful Anti-Gartley. If this holds, the upside is limited; around 17200 would be the ceiling.
On the other side, pennants see fakeouts, not unusually.
In this case, the five-wave movements of wave C might be incomplete so far, and a new high of 17400-17650 would be marked instead.
A flat setup as above is eventually complete if the price turns around at either high.
Even though this shape could be a "bullish" flat, not a bearish one, the pennant is a sign of trend continuation.
So the follow-through of such a bullish pennant could end up in a mere pullback.
In the previous ideas, we examined bearish possibilities.
BTC 1H Short-trading idea
Going to form a Bearish Flat?
BTC in compression
Where is the top of the Inverse H&S-like structure?
First of all, this analysis is coherent with the above scenarios.
So we may have a short position from around 17390, or we could make entry at 17200, 17400-17650, while recommended SL is over 17800 (manage your own risk).
Although arguably BTC is in compression, the bearish movement will likely resume - let's check this hypothesis.
I laid out a tapering pennant to measure the price conversatio.
(i) Corrective Wave of Elliott wave theory
Although there are a variety of corrective waves in EW theory, a flat would fit most appropriately for our presupposition.
A flat correction wave comprises three waves, having 3, 3, and 5 minor wave structures, respectively.
Wave A was an irregular correction, and wave B was a typical zigzag with a steep decline.
Then wave C. Is this complete? Let's see in deep.
(ii) Examining the current formation
Waves B and C shaped a beautiful Anti-Gartley. If this holds, the upside is limited; around 17200 would be the ceiling.
On the other side, pennants see fakeouts, not unusually.
In this case, the five-wave movements of wave C might be incomplete so far, and a new high of 17400-17650 would be marked instead.
A flat setup as above is eventually complete if the price turns around at either high.
Even though this shape could be a "bullish" flat, not a bearish one, the pennant is a sign of trend continuation.
So the follow-through of such a bullish pennant could end up in a mere pullback.
ความคิดเห็น:
correction:
follow-through of such a bullish *FLAT could end up in a mere pullback.
follow-through of such a bullish *FLAT could end up in a mere pullback.
ความคิดเห็น:
Update.
Although there's no significant change in the conclusion, some potential errors and apparent inconsistency between the image and the descriptions are found. Sorry for the confusion.