1. What Is Elliott Wave Theory?
Elliott Wave Theory proposes that markets move in repeating wave patterns. A cycle consists of 5 impulse waves and 3 corrective waves.
2. Basic Structure
📊 The 5-3 Wave Structure
Upward Impulse:
Wave 1: initial rise → Wave 2: correction → Wave 3: strongest rise
→ Wave 4: correction → Wave 5: final rise
Downward Correction:
Wave A: decline → Wave B: rebound, or trap → Wave C: final decline
3. Core Rules
- Wave 2 does not fall below the start of Wave 1.
- Wave 3 cannot be the shortest wave.
- Wave 4 does not enter Wave 1's price territory.
4. Applying It to Crypto
Bitcoin's major cycles can be interpreted through Elliott waves. However, there is considerable room for subjective interpretation, so use other indicators alongside them.
🃏 Objective AI Analysis
See AI analysis based on data, without subjective interpretation.
Start in the bot