Leading diagonal invalidated..

The mentioned in the previous post “Leading Diagonal” is invalidated by the market now. The wave 3 under that count would be the smallest one, which is not possible.

To make an accurate call for a top became quite a challenge.

On one side we see clearly topping sentiment. The queue to buy the tickets to the Moon is growing rapidly. 15 $ per ETH is a “sure thing”, with other highs on radar already. Combined with the positive news noise it would normally be a clear sigh for a top. On the other side there are still traders, trying to short the market. However, at the top no one will want to sell anymore. If you remember, it was the same at the last bottom. Just few weeks ago, almost no one wanted to buy.

In short, the sentiment for the top is mainly ripe but would be better if we saw the complete capitulation of “shorters”.

As for the Elliott Waves.. Phew, it took several attempts (and more than few hours) for the author to come through all the possible scenarios. And at the end we are back with the count we already were using during the last updates (just before the diagonal). So, here it is again, adjusted to what market is showing us:ETHBTCMidTerm-Bull

For this count to be true the ETHBTC should rise to around 0.029 then come back to 0.02650 and rise one last time to around 0.03. Why these levels? 0.029 would 1.618 of the wave 1 (in circle), typical Fibo for the wave 3. The way back to 0.02650 is revisit of the 4-th wave of one lesser degree. And then one final rise to a “magic” 0.03.

Wow. The author can’t believe he is writing these super bullish scenario, but that is what market needs to archive in order to keep the shown above count.

It looks so little. Just one chart. But the author spent several hours, analysing many different possibilities and came to the decision that this Elliott Waves count is the prefered one for the moment.

There is another one count, which looks also very beautiful. But this count is very bearish mid-term and doesn’t fit therefore into the bigger picture. Looks like it’s better to slip it over and see the things more clear tomorrow (or actually already today) in the morning. As a yoga practitioner the author rarely sit so late in front of PC. Just the market situation like we have right now and the expectations of the growing amount of followers keep him awake. But even this power has its limit =)

Check the next update soon.

The Elliott Wave Principle describes the behaviour of the financial markets. This Principle is build on the mass psychology swings from pessimism to optimism and back in a natural sequence. When these swings happen, the specific Elliott wave patterns in price movements are created and become visible. Each pattern has implications regarding the position of the market within its overall progression, past, present and future.
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Author: Ravno_108

Sentiment wave rider. Product creator. Yogi

6 thoughts on “Leading diagonal invalidated..”

  1. My idea of bying ETH after TheDAO active creation phase didn’t work too well :/ 0.0222 looks now like a point of no return

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    1. You aren’t alone, mate. Me too now scratching the head, trying to figure out “if I want to reenter long, where should I do it?”. The only thing which keeps me relaxed (except yoga, of cause) is the fact that market will eventually retrace and the Elliott Waves should help to locate the spot.

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