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Many of you must have seen this wave in the last time, I have one of trading strategies if you see wave like that,

https://i.imgur.com/OceXsw2.jpg

Eliott Wave Pattern 5-3
Wave 5 pattern is called impulse wave. The push wave moves to form the main trend, while corrective waves move against the general trend. Waves 1, 3, 5 are called waves of motivation or motives, while waves 2 and 4 are corrective waves.

The meaning of each wave (bullish):

Wave 1: Price makes an initial movement up. This is usually caused by a small number of people (for various reasons, whether real or figurative) feeling that prices are at their lowest, so this is the right time to buy. This causes prices to rise.

Wave 2: At this point, quite a lot of traders consider the price to be too high then act to take advantage by selling it. As a result, the first profit taking and correction occurred.


Wave 3: These waves are generally the longest and strongest trend. In this phase,
fundamental news and technical trading signals have attracted many traders. As a result, prices will soar, usually prices will soar higher than during wave 1.


Wave 4: In this phase, some people take profits, and feel the price is nearing the peak. But there are some people who still think that prices are still in an upward trend, so these waves tend to be still weak.


Wave 5: This is the phase where the price is too high to buy, and the power that is able to keep prices up is due to mere of hysteria.

Note that the length of each wave is not always exactly the same as the comparison in the picture, it can be longer or shorter, that is natural.

I can't say I like these technical analysis tools, like Eliott Wave Patterns. They work so fine in hindsight BUT they DON'T work at all in live trading. At least to me they have never worked. I would like to be proven wrong by someone showing me how he trades Eliott Waves in live broadcast. The reason is, Eliott Waves can't be identified at all in live trading. Only afterwards, looking back in time these partners can be shown. If they can't be shown at the current time freame, then just switch to another time frame and search them there. I'm sorry to say but not very useful.

technical analysis works and does not also , not always those patterns and everything works we should be know market sentiments and having knowledge about whats happening  is good

This type of trading and the trend on the photo, is what I saw on many investors and professional traders. It's common and usually it is happening again. We don't know that cryptocurrency is bound on history also. Just like the trend on reaching an ATH and then will fall and eventually it will consolidate.

Except there is some support before the low after Wave1, I don't see this situation being true. The price ought to crash more for the second Wave to begin. I mean, something has to sustain a crash and in Wave2, there isn't anything as such. The same thing happened with Wave4. Price ought to have retraced to where the RED line showing HIGH before continuing upward but it didn't happened. I am a TA person but I don't favour the Wave trading pattern because it's more like a guess work.

The strategy for trading is not always going smoothly, because there are so many situations and conditions that are not predicted beforehand. various surprise news requires that we can make decisions in situations that are as difficult as possible. a trader is required to be able to act carefully, deftly and quickly. for me the most important thing is the ability possessed by a person and not a strategy that will determine the success of a trader.

I’ve never found Elliott waves to be useful in live trading either, never had any success with them and I typically get much better results using other methods to do TA like with simpler line patterns (wedges, triangles etc) and candle patterns, especially in the market we’re currently in. Then again I’ve never been one for super complex indicators and patterns in the first place, but most of the people I know that trade crypto also dislike Elliott waves.

I have never used the Elliott wave before maybe I will use it one time and write my experience about using it for TA.
Also I feel as thou it's more effective if one is using it more for BTC/USDT trade pairs rather than other altcoin trade pairs.

I majorly use MACD, RSI, 4 EMA and Bollinger bands when doing some TA. I just use TA as some sort of guidance and not fully rely on it and so far, things have been okay  ;)

It would be effective at one point but not all the time.
We can't apply a technical strategy all the time and we can't rely our luck in a single method especially if the market isn't stable. However, we all have our own methods and we can apply which one if profitable for us. It all depends on perfect timing.

There are a lot of strategies, but not all of them can be called workers. To do this, it is better to try use them yourself and decide which is best for you.

It's our choice to choose a strategy where we feel comfortable to use when we are trading. As for me, I would rather use the basic way and normal way to do trading rather than putting too much complications. I would just want to do a simeple way rather than relying too much on technical analysis.

I think everyone has a different strategy when trading, when you do a method like that you can still get a profit, but for others it might not be very profitable.

Totally agree with this point

A few years ago I ran a backtest on USD:EUR currency pair datafeed for a timespan of over a year (actual tick data) using different scaling factors (to remove noise from the dataset) and I wasn't able to find even a single Eliott Wave 5-3 Pattern breakout. I know it is kinda statistically impossible (I checked and rechecked everything) but here we are. Statistically, it is all just random walk, and even if you can actually find a pattern here and there, they are completely random and useless for making your trading decisions on them

Isn't that what they call higher highs?

When you try to look at the chart in a monthly frame or maybe a weekly time frame, the trend can be seen as a whole while if you do it check it on hourly, you'll see the tag of war of bulls and bears. The trend in the higher time frame will always be the first to be considered if you are into swing trading unless you trade every day like the scalper.

I think almost all strategies have this serious flaw. People who use Technical Analysis they look back on charts and try to find patterns, so of course the patterns all look like they are there. But for me, when you've done live trading you realize the charts actually don't look like the ones we see every day. Things happen within those candles that a chart can never show.

I think OP's got a great idea, plus it's always good to learn, but he should try it with live predictions and see how it works out for him.

trends are most clear on higher time frame in lower time frame you cannot get clear picture trading in lower time frame requires more knowledge and experience

Technical analysis is eve quite too difficult for me to use, several time I have stayed in chart trying to study the rice movement and I end up spending all my entire days on it without making any meaningful thing. I think technical analysis is really for pro traders and also much more useful for day trades.

For, fundamentals analysis works wonder, and that is why ever since I know my limit, I have decided not to engage myself in day trading, I  just buy dip and wait for me to get to a target price then sell, which fundamental analysis helps me a lot in telling when to buy and when to sell.

I don't use Elliot Waves as my strategies but maybe for people who uses that strategy can say that it works for them.
To understand how one strategy will work needs time, and it's not easy to recognize the pattern in every strategy.
For me, besides of using the strategy, I was usually watching on what happens in the market, and sometimes, I forgot to use any strategy that I know because the market moves too fast and I can analyze using one of the analysis.
But I can analyze directly by looking on the market, and that will work well for me.

This might be a better guide for newbies starting into trading who need some basic knowledge before starting trading. Trading term has a lot of ups and downs which do make it difficult to have profits each time but following a strategy which could lead us to profits is a good start for numerous peoples. OP has distributed each major turn into 5 waves giving us brief description about them and why and how it happens. It always is profitable if we know the cause behind any situation or the main reason behind it and once we know one, we can make good profits by avoiding the mistake most of the peoples do and end up in loss.

This maybe one of the strategy of the author of this topic, but honestly speaking I don't understand what his trying to intend to his illustration diagram, just all I know is that in making strategy in trading is not that easy especially using technical analysis, for me it is a bloody things before We understand to read the graph in every platform.

Even I am one of those who do not like Elliott Waves. Candle patterns is always easier for me to understand and also I can predict the price or the current market situations by carefully studying them. Elliott waves can actually state us at which point the market is and what major peoples including big whales are doing with their coins. By studying this, we can understand the market needs but we can't actually find a better dip for us to invest into. For finding a dip where I could invest into, I use candle patterns. Elliott waves too is not that bad and can lead us to have enough profits as it can thoroughly explain us the market needs and we can fulfill them if needed.

I also used this type of things in sometimes but whenever you got the tips to use that reading properly it will not work in all the time that is the problem here to follow the Strategies and more anything we need to guide by someone otherwise anything is not easily possible.

LOL, I found out that many people always find it difficult to really read chart when it comes to technical analysis, including me too, which is why I respect myself by simply just getting myself involved with long term trading alone, or a short term trading, like a month interval.

With that, I can still use fundamental analysis to know when it is right for me to enter trade and when it is right for me to take profit, but the best trading method ever is just to continue holding, the profit will keep compiling itself and multiplying as the value of the coin we hold increases. I believe that should be the best strategy.

This strategy might be too complicated or complex for a newbie in trading buying low and selling high is just the basic way of trading just like the price of bitcoin hitting $8k take profit while it has retraced buy again and sell high consistently however technically Elliot wave pattern is such an advanced trading strategy for swing traders.

I rarely use Elliot Wave for my trading strategy simply because using another "basic" indicator already help me. In your experience using it, did you just use this method or you combine with another indicator?

We should avoid becoming one way pony-tail. If we do then we will only struggle. So that’s where we have to be extremely careful about everything. I get it all rolling easily with having strategies that allows me to operate in any market situation. As with that I can make good and consistent profits. I also use some Trading Tools (https://cryptolinks.com/cryptocurrency-trading-tools), which only adds up to how I work and brings so much benefits to me in any situation.