Steemit Crypto Academy Season 2 Week 6 Homework Task By @fadil1 : Elliott Wave Theory

Good day everyone,

I am very delighted to be part of this wonderful lecture and on the topic on Elliott Wave Theory. I will like to thank our noble professor @fendit for that wonderful lecture.I really enjoyed and learnt a lot so am kindly here to present to you my work.

WHAT IS THE APPLICATION OF ELLIOTT WAVE THEORY

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To know exactly and what Elliott wave theory is, j think you need some knowledge of what of all theory is before getting into Elliott wave theory itself. It is simply a pattern that moves from time to time which can help one to predict the price of a coin in the near future and that is by analyzing the chart technically. A great man called Nelson Elliott was the one who brought us the theory we are talking about.

Also in investors gets it easy to work know the price of a coin in the near future in the market with the help of successive repetition.

This theory also work together with some patterns and waves namely impulsive and corrective wave. When we talk impulse wave it means the pattern that goes directly with the market in terms of its current trend. Whiles corrective wave is the pattern that moves in the opposite direction in the market in terms of current trend.

WHAT ARE IMPULSE AND CORRECTIVE WAVES

Let me quick start with Impulse wave,

IMPULSE WAVE

Impulse wave is a wave that is use to determine how patterns move in the market trend. In this theory it has been said that when you that in the market the wave function is up to 8 patterns, then those five 5 waves are all impulse waves which are :1 - 2 – 3 - 4 - 5.

Let’s get to know what all these five waves are:

1.The 1st wave is the starting wave which has minimum buyers and when you are analyzing this technically you won’t want to engage yourself because prices are very low.

2.The 2nd wave goes down a lot which makes a lot of investors develop this bearish trend by the help of their profit.

3.In this 3rd wave, a bullish trend of created because prices goes up and more to the point a lot of investors have started buying asset due to the use of this wave.

4.The 4th wave is what’re assets are been sold so it makes the price comes down and I can say if you want to purchase a pull back this is the right place.

5.The 5th wave is the last and only bullish wave.

CORRECTIVE WAVE

Corrective wave is a type of wave which moves in the opposite direction of a market trend as explained earlier. From the Elliot wave theory, it shows that the corrective wave appears after the five impulsive waves.

Below is a clear screenshot of corrective wave which is labeled A, B and C.

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Whenever a bond comes between 3 waves that is A, B and C they turn to be of the same length so that it will be easy to see and when that is done it turns out to create a flat shaped object.
Also whenever you see a zigzag shape you need to know that price at any moment can increase in the market.
The last shaped is the triangle. This shape is usually difficult to see and anytime you see it just know the volume of a crypto asset will reduce.

WHAT ARE YOUR THOUGHTS ON THIS THEORY

From my side of view and my understanding about this theory, I will say is a good theory and very important as well and I think every investor should know this because it helps an investor to know when to invest which prevent them from losing . Although it is not easy to use this theory for your analysis but the only thing you need to do is that take your time, get someone to take you through and also try to practice. Because when you know into details about it the probability of taking risk is very low.

Choose A Coinchart In Which You Where Able To Spot All Impulse And Corrective Waves And Explain In Details What You See

With the aid of this demonstration I will like to use BTC

I can see clearly that the impulse waves which are 1, 2, 3, 4 and 5 moves directly with the corrective waves A, B and C. From my explanations earlier on i said vividly that when A and C goes through a direction, B will also move in a different direction and when So is done that shaped zig zag will be formed so therefore take a good look at the graph below you will clearly see that shape.

CONCLUSION

In brief, I will like to say I really enjoyed the lecture a lot and I can say this lecture was one of the great lectures for this week. I also learnt a lot especially on ‘Elliott wave theory’

Thank you very much professor @fendit for that wonderful lecture and May the good Lord be with us and bless us all.