- Apr 2017
This is not the time and place for an in-depth lesson on Elliot Wave Theory. There are numerous websites that offer these lessons freely, and often times the teacher is more astute than I in this art. If you are a trader, you owe it to yourself to learn this craft, as it is a great tool that is practical and true. Can you imagine someone calling themselves a chef, but they never learned how to bake bread? Traders should know some things, and Elliot is one of them.
Per Elliot, all markets move in waves of 5. In a bull market there are three waves up, separated by two waves down. The down waves are seen by traders as corrections or consolidations. Wave 3 is typically much larger than either waves 1 or wave 5. Elliot himself said that wave 3’s are often ‘awe-inspiring’.
I mention all this because I am of the opinion that the past few weeks most altcoins were in the early stages (wave 1) of a bull market. Wave 1 (for many) has ended and a wave 2 has commenced. Wave 2 was intense but short-lived. In many cases (IMHO), Wave 3 has either already commenced, or will commence soon. As insanely profitable as wave 1 was for many traders, the next wave might just be a story we will tell our grandchildren. Stay alert...