SUMMARY
Back on February 8th, the below chart of ArtByte (ABY/BTC) was posted with a projection that price is likely to put in a lower low. The chart analysis showed that a higher degree of trend had completed an abc (blue) correction followed by a clear and crisp five wave upward impulse. Elliott Waves states that a retracement always follows an impulse to complete the motive.
Closeup charting shows that a zigag (5,3,5) is more probable than the labels in the previous update. However, the destination still calls for a lower low to be likely. For the C wave, if subwaves 1,2,3,4 are complete, then wave 5 still remains. That level would be equivalant to a Fibonacci zone of 0.86. Now, just because you can label an abc zigzag doesn't mean that there is a guarantee of a trend reversal and that the bottom is assured. That's not how Technical Analysis works. If you judge the performance of Technical Analysis only in comparison to perfect, that's an unfair setup. Most non-believers likely had painful experiences of loss while trying TA and became judgemental against it...most unfortunate. This is why I also say that a good trader only becomes better by first forgiving himself for his mistakes, learning the lessons and trying again.
Legal Disclaimer: I am not a financial advisor nor is any content in this article presented as financial advice. The information provided in this blog post and any other posts that I make and any accompanying material is for informational purposes only. It should not be considered financial or investment advice of any kind. One should consult with a financial or investment professional to determine what may be best for your individual needs. Plain English: This is only my opinion, make of it what you wish. What does this mean? It means it's not advice nor recommendation to either buy or sell anything! It's only meant for use as informative or entertainment purposes.
Please consider reviewing these Tutorials on:
Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
Elliott Wave Counting Tutorial #3
Laddering and Buy/Sell Setups.
Laddering Example with EOS
Tutorial on the use of Fibonacci & Elliott Waves
@haejin's Trading Nuggets
Essay: Is Technical Analysis a Quantum Event?
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