Financial Technical Analysis Crypto Narrative Chapter 8 Elliott Wave

Up to the Harmonic Pattern Chapter 7, we only examine up to 3 waves (2 impulsive and 1 corrective). In this chapter, we will discuss up to 8 waves of the Elliott Wave. Ralph Nelson Elliott eventually found that the market traded in cyclic pattern. What goes up must come down, and what went down must go up, or up, down, up, and down. He also found out that most price action are affected by traders’ psychology. When a price is going up, many traders will want to take a ride (participation phase), when the price went up too much, early traders will want to take profit (after excessive phase), after that late traders will start panic selling, and after everything went down new traders will want to buy cheap (accumulation phase). As I always preach every where about trading, “it does not matter what the truth is, what matter is what people believe”. Remember when a journalist wrote that I double spend occurred on Bitcoin and the price crashes? In the end, experts review and verified it to be false, fake news, misinformation, or just misunderstanding of the journalist who is not really a developer, programmer, nor technician. “This event really proofs that people does not care about the proof, they care more about what people say, if not then they believe what they want to believe”. Sounds like the DOW Theory right? Well, the Elliott Waves are said to be the…