I have two questions about one specific setup, which in my understanding looks somewhat misleading because it morphs into a corrective pattern that looks like a flat but subdivides 5-3-3 whereas flats are typically 3-3-5 patterns.
Firstly, here is the fuller view of what I’m dealing with.
Question #1. I break down the first downtrend move as a triple zig-zag combo labeled WXYXZ. Since wave X trades into the territory of wave W it shall be either a leading diagonal or zig-zag combination. Is this correct?
Question #2. If (1) is assumed to be true then it appears that the corrective structure of a larger degree is NOT a flat because as I said flats are typically 3-3-5 and NOT 5-3-3.
So, is it possible for flats to subdivide 5-3-3? Does this mean that an extended wave A and truncated wave C make for a valid flat like this? If not, does this mean that wave C should extend further and have an additional fifth subwave in it which is to complete the one large structure?
sidenote 1: elliot wave theory is hardly applictable on forex (if your chart is forex, i didnt take a clooser look what the underlaying security is) simply because elliot is a theory that apploed to trending markets and not ranging (all currencies are ranging by nature, gold, oil and indexes are a mixture between rangingand trending= in some extend elliot can be used there but elliot works good with solo stocks)
sidenote 2: you are making things way to complicated with your charts (no offense in any way)
elliot wave is something i learned within few minutes and had to work hard over months to kick it out of my mind again. im not saying you should not know or understand elliot wave but you should not rely on it too much.
Nope, this is crypto (ETH -ethereum) and not a forex. Why are these charts seem way too complicated? The idea here is that if the first part is labeled INCORRECTLY then wave C must necessary have 5 waves and what is going on right now in this instrument could be an opportunity for ultimate short. I’m currently looking at the profit target below the end of wave C.
Ok, so the first part which is wave A in a flat, could be a 5-leg combo, and B & C waves could be a 3-3-3 zig-zag? Also, does this mean that the first part is labeled just fine?
Nope, this is crypto (ETH -ethereum) and not a forex. Why are these charts seem way too complicated?
The idea here is that if the first part is labeled INCORRECTLY then wave C must necessary have 5 waves and what is going on right now in this instrument could be an opportunity for ultimate short. I’m currently looking at the profit target below the end of wave C.
Ok, so the first part which is wave A in a flat, could be a 5-leg combo, and B & C waves could be a 3-3-3 zig-zag? Also, does this mean that the first part is labeled just fine?
