How 2 Maximize the Profit & Minimize the Loss Using Elliotwaves

8 мая 2018 г.

This is based on the Bitcoin Market Cycle 2017 - 2018. Please note that this for Uptrend Market and it's totally Opposite for Downtrend Market if you are able to Short.
Also note that you can apply the same for any Market not just for Bitcoin.

- In a Uptrend We have 5 Waves followed by 3 Corrective Waves
- In that 5 Waves 1,3 & 5 are Impulsive Waves Going up and 2 & 4 Corrective Waves going down.
- We only buy in the beginning of the above waves 1,3 & 5 and sell in the top of those waves
- Wave (1) (2) (3) (4) (5) are Intermediate Waves
- Wave 1 2 3 4 5 are Minor Waves which is Sub waves of each (1) (2) (3) (4) (5)
- Wave (1) price movement can take upto ~2months or more
- Wave (3) price movement can take upto ~4months or more
- Wave (5) price movement can take upto ~3months or more
- Use Daily Chart see the big picture and 4hr to check and confirm the Waves (1) (2) (3) (4) (5)

Now lets assume that you are going to invest 1000$
You can adjust this to match your investment amount
Start of the Uptrend is Point 0 and End of Uptrend is Point T
To find the Entry Point or Point 0 we need to find a new market cycle by doing the following in Daily Chart & 4hr Chart to confirm the trend change

-Using Wave 5 channelling technique of the previous market cycle

-Reversal chart patterns (wedges, double/triple bottoms, broken trendlines etc)
stockcharts.com/school/doku.php?id=chart_school:chart_analysis:candlestick_bullish_reversal_patterns

-8,13,21, and 34 day Fibanacci Ema filter
investorji.in/fibonacci-ema-trading-system-short-medium-term-trading.html

After finding the Entry Point 0 then its time to find the Targets for Buy, Sell and Stop Loss

Entry Points (Buying Targets)-

Wave (1): Buy 300$ @ Wave 1 of Wave (1) Retrace 50% to Wave 2
Wave (3): Entry 1: Buy 500$ @ Wave (1) Retrace 50% to Wave (2)
Entry 2: Buy 400$ @ Wave 2 of Wave (3) pass Wave 1 level going up.
Wave (5): Buy 200$ @ Wave (4) Retrace 38.6% of Wave (3)

See the highlighted boxes for the 4 Entry Points


Stop Loss (Protecting Investment)-

Wave (1): Sell all if the Price goes below Point 0. You can reverse and go Short if your exchange allow to do so.
Wave (3): Stoploss 1: Sell all if the Price moves below Point 0.
Stoploss 2: Sell all if the Price moves below Intermediate Wave (2)
Wave (5): Stoploss 1: Sell all if the Price moves below Intermediate Wave (4)
Stoploss 2: Sell all if the Minor Wave 4 moves below Minor Wave 1 of Intermediate Wave (5)

See the highlighted boxes for the 5 Stop loss Points


Exit Points (Selling Targets)-

Wave (1): Sell 200$ @ End of Wave (1). Do 2.618 Fibonacci Extension of Wave 1 of Wave (1) to find end of Wave (1)
Project Wave (3) with 3.618 - 4.618 of Wave (1)
Wave (3): Sell 700$ @ End of Wave (3). Do 3.618 - 4.618 Fibonacci Extension of Wave 1 of Wave (3) to find end of Wave (3)
If Wave (3) is extended then End of Wave (3) is closer to 4.618
Wave (5): Sell 500$ @ End of Wave (5). Do 1.618 - 2.618 Fibonacci Extension of Wave 1 of Wave (5) to find end of Wave (5)
If Wave (3) is extended then End of Wave (5) is closer to 1.618

See the highlighted boxes for the 3 Exit Points


Ideas & Comments are welcome to make this Idea much better. Thanks

RISK DISCLOSURE:

Please note that this is purely Educational purposes only and not as Individual Investment Advice. If you choose to follow the above techniques you do so at your own risk after giving thorough and reasonable thought and consideration to your actions and their potential consequences