HOMEWORK TASK SEASON 2 WEEK 6 BY PROF.@fendit ||ELLIOTT WAVE THEORY||

in SteemitCryptoAcademy3 years ago (edited)

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I hope you are doing well And You will be busy with your work .This post is task for professor @fendit which is about Elliott wave theory. When I saw this assignment , I got very interested. Then i started working on it .After reading a lot of articles And Professor after reading your lecture I was able to solve this task. And finally I will say that I learned a lot from this. And I presented my best.

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Question No 1:

What’s the application of this theory?

0VERVIEW OF THIS THEORY:

The Elliot wave theory was discovered by Ralph Nelson and this theory basically suggested whose that market moves up and down in recognizable pattern and he gave these recognizable pattern and structure and he represented them in the form of waves.
According to this theory

“Stock prices rise and fall in predictable trends(waves),which are influenced by investor psychology.”

This theory is very useful for prediction of the price of things.
It would not be wrong to say that the market trend works according to this Elliot wave theory. If the market goes up, it will go according to the this theory, and if it goes down, it will go according to the same theory.

APPLICATIONS:

I'm going to describe the some application of this theory below:

1- This theory helps a lot of investor and trader to make a powerful desicsion about this buying or seelling the products

2- It aids in the forecasting of goods prices.

3- It assists us in comprehending market dynamics.

4- It also helps us stop losing money when we trade coins on the market.

5- This theory will help us trade in a variety of markets, but before we can make any trading decisions, we must first learn everything there is to know about Elliot wave theory.

Elliott wave theory is one predicted theory in one which has one extent give you insight in the probable future direction of market.

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Question No 2:

What are impulse and corrective waves?How can you easily spot the different waves?

The Elliot wave theory was discovered by Ralph Nelson and this theory basically suggested whose that market moves up and down in reconganizable pattern and he gave these reconganizable pattern and structure and he represented them in the form of waves.

1)Impulse waves:

“ The trades would be impulsive waves if the wave moves towards high prices.”

Or

“Stock prices moves up then trades show impulsive waves.”

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Structure view:

  1. An impulsive wave is often divided into five waves, 12345.
  2. Wave 2 is still shorter than wave 1, which means it can't go any further than wave 1's origin point.
  3. Wave 3 is always the shortest of the 1,3,5 waves.
  4. Wave 4 never crosses the corrective wave 1 price territory.

a) Calculations:

  1. Length of wave 2 is 0.618 times of wave 1.
  2. Length of wave 3 is 1.618 times of wave 2.
  3. Length of wave 4 is 0.382 times of wave 3.
  4. Length of wave 5 is 1.0 times of wave 1.

b)Working function:

  1. The first wave signals the start of the loop. This demonstrates that as stock prices increase, few people purchase properties.

  2. After the first wave, comes the second. When rates rise too fast, investors or traders who purchase assets make a small profit and then sell them for a small profit. It's possible that the stock price will fall slightly.

  3. The rapid increase in prices is the third wave. The majority of people begin by purchasing assets.

  4. The fourth wave is the polar opposite of the second. It has the same rules for buying and selling properties that make very little money in industry.

  5. The fifth wave is the last opportunity for traders to purchase the coin that corresponds to the time.

2)CORRECTIVE WAVES:

“The trades would be impulsive waves if the wave moves towards low prices”

OR

“Stock prices moves down then trades show corrective waves.”

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impulsive waves represented by numbers such as 12345.And corrective waves always represented by “Alphabets letters”.
Corrective waves have three types of corrective waves:

1-zigzag:

  1. The first form of corrective structure is the zigzag.
  2. Composed of three waves: A, B, and C.
  3. Adhere to a 5-3-5 wave pattern.it means that Wave A is subdivided into 5 waves, Wave B into 3, and Wave C into 5.
    4 . zigzag has a sharp appearance.
    The other ones are flat and triangle corrective waves detail given in table that’s given below:

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The second form of corrective structure is the flat that follow 3-3-5 pattern that means that A wave is subdivide into 3 waves ,B wave subdivides into 3 waves and C wave is subdivide into 5 waves and same happens into triangle form of corrective waves that is third form of corrective waves.

How can you easily spot the different waves?

Yes we can easily spot the different waves by taking some rules keeping in mind.

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1- The first wave signals the start of the loop. This demonstrates that as stock prices increase, few people purchase properties.
2- After the first wave, comes the second. When rates rise too fast, investors or traders who purchase assets make a small profit and then sell them for a small profit. It's possible that the stock price will fall slightly.
3- The rapid increase in prices is the third wave. The majority of people begin by purchasing assets.
4- The fourth wave is the polar opposite of the second. It has the same rules for buying and selling properties that make very little money in industry.
5- The fifth wave is the last opportunity for traders to purchase the coin that corresponds to the time.

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Question No 3:

3-What are your thought on this theory ?why?

According to my point of view
This theory is extremely useful for both investors and traders who want to buy and sell commodities in the market while maintaining a profit. Elliot wave theory is a predicted theory that can give you some insight into the market's likely future course. Elliot wave theory is a wrap study of Elliot's suggested law, not primarily a method for forecasting. It simply provides insight into popular psychology. When you begin to apply this principle in real time, you will notice that it has some predictive value and will continue to do so in the future. Simply concentrate on your feelings to benefit from this theory. However, it is not guaranteed that the forecast will be 100 percent accurate every time. All we have to do now is conduct our study and maintain emotional balance. We may make decisions based on a number of criteria or predictions, not just this theory, if we use a big investment. This theory, on the other hand, could be spot-on in the case of small investments. Elliott wave theory is one predicted theory in one which has one extent give you insight in the probable future direction of market. This theory gives all detail about market that what's happens in future.

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B)

Choose a coinchart in which you were able to spot all impulse and correct waves and explain in detail what you see. Screenshots are required and make sure you name which cryptocurrency you're analyzing.

I have BINANCE account.so I taken screenshot of this account trade.
I use the BINANCE coin chart to explain the patterns of the waves as shown in the below screenshot. You can see the ETH TO BTC price chart below and waves. As shown in the screenshot below, I use the BINANCE coin map as an example of wave patterns. ETH TO BTC price chart and waves can be seen below. I use the Binance Coin Chart to illustrate the wave patterns, as shown in the screenshot below. ETH TO BTC price chart and waves can be seen below.

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In thess screenshot we clearly seen the impulsive waves and corrective waves pattern.The first five waves are impulse waves.The first five waves are impulse waves; the first is the initial wave, and the second rises before falling. The price rises rapidly in the third and is much higher, but it falls and rises again in the fourth.
The corrective waves' zigzag pattern can also be seen in the screenshots below.The point where trade have trade have sharp view this point is zigzag structure.

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CONCLUSION:

It would not be wrong to say that the market trend works according to this Elliot wave theory. If the market goes up, it will go according to the this theory, and if it goes down, it will go according to the same theory. Elliott wave theory is one predicted theory in one which has one extent give you insight in the probable future direction of market.This theory gives all detail about market that whats happens in future.

HONOURABLE MENTIONS:
@fendit

I have tried to complete the task . I hope that the professor will like my effort and in case of mistake, she will guide me.

Sort:  

Thank you for being part of my lecture and completing the task!


My comments:
I'm not really convinced by this work.
The most important thing in that task was to trace the pattern in the chart and you didn't do it. As well as that, there are many conceptual mistakes and in many paragraphs it all just seems as if you had copied it from different places and spun the words...


Overall score:
3/10

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