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

Hi steemians. How are you. I am fine and hope that you will also be fine.
Thankyou so much dear professor @fendit for your informative and interesting lecture.

Section A

1.what is the application of this theory?

The main purpose of Elliot wave theory is to find external position and proper entry when we buy some thing from the market. First of all, according to me the more difficult part is the nation of Elliot wave. It is more difficult. It consist on 3 to 5 patterns. Five are made up by (i,ii,iii,iv,v) and are called coming waves. On other side 3 may consist on (a,b,c). Properly covered, it will withstand a great deal of adverse condition.

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It is not wrong to say that the it is always good to enter a place at the bottom of wave trade. If this is a quickly trend, a buy signal should be found at the bottom of wave 4 while waiting for wave to form. If this is a bearish trend, then the sell signal should be at the height of wave 4, while wave 5 is waiting to form. Immediately after the formation of the corrective wave 5, the latter form which is best time to signal a buy in a bearish trend, and a sell signal in a quickly trend.

2.what are impulse and corrective waves? How can you easily spot the different waves?

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Here I will describe both impulse and corrective waves.

Impulse waves:

Impulse is most popular and common type of wave. As we have been before, this types of waves always follow the trend big markets. This type of movement always represented by wave 1 to 5 and always show huge price variations.
Here is the details through with we can understand about these waves.

Wave 1:

It is always indicates early market move.

Wave 2:

IF a quickly trend, Hey closing trades and talking profits.

Wave 3:

This is very longest and strongest wave. It shows the good quantity of buyers trying to reach forward market again. Because its main reason is attention of people.

Wave 4:

Traders are taking profit due to their emotions.

Wave 5:

When the last currency wave occur, when the currency is at highest rate.

Corrective Waves:

The next waves in the above graph are called corrective waves, made up of (a,b.c).
There are 21correction patterns, Elliot explained.
I am explaining few of them here.

Zig Zag:

If the waves we have seen are reflected in the formation of the zig zag, then we can say that the wave B is less than A and C.

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Flat:

Its location is easy to find.

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Triangle:

This means the fluctuation and volumes are decreasing.

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3: what are your thoughts on this theory and why?

I want to say something about Elliot theory that I have always wanted to find such trends, especially in the currency exchange market. But the issue is that it is very small branch and it takes lot of time.

Section B:

Choose a coinchart in which you were able to spot all impulse and correct waves and explain in detail what you see?

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I think that lite coin analysis is good using Elliot wave theory.
Scout the trend of Elliot waves in the 5 meter chart. Wave 1, actually indicated a relatively small low number of buyers in litcoin corrupt currency. Waves 2, hinted at profits from small buyers of litcoins. Wave 3, indicate good numbers of buyers in market. Wave 4, in this wave buyers started taking profit again. Wave 5, this wave shows that the traders ended up trading in litcoin.

Conclusion:

This theory is very valuable and informative for us in matter of crypto currency trading. Through this theory we can easily make idea that is bullish or bearish and make lot of investment for the purpose of profit.

I am again thankful to dear sir @fendit who has told us about this outstanding theory.