kingpicclo

Lesson 4: Elliott Wave
In lesson 3, it was stated that Wave 4 and Wave 5 of Elliott belong to the distribution phase according to Wyckoff. In this article, we will explain Elliott's ABC waves.
Wave ABC is a retracement wave in Elliott, wave ABC is a wave of Downtrend. Have you ever wondered why it is ABC and not waves 1, 2, 3, 4, 5?
As mentioned, when MM finishes distributing, the market fluctuates freely, where the price is regulated by traders, and the traders are small, very small and many traders, when the market realizes that the wave has run out and cannot If you push it up any further, traders will start selling, the price will go down, creating a chain effect, the market will be chaotic and sell off. Therefore, prices will drop very sharply in a short period of time. This is wave A according to Elliott.
MM at that time was just waiting for the price to return to the accumulation area to collect. But if the market is left free, it will take a long time and it will be very difficult for prices to reach the bottom for accumulation. To overcome this, MM will help bring prices to the bottom by "speculating" in the short term.
When the price drops rapidly to the saturation stage, the panic decreases, the price tends to slow down, that is when MM collects a large amount of goods, pushing the price up to make a profit. This is wave B according to Elliott.
MM took profit at wave B and at the same time released the large volume it had collected, helping to accelerate the process of driving the price down, creating further panic, which helped the price reach the accumulation zone faster. This is wave C according to Elliott.
At the end of wave C, the accumulation process of MM begins again to form a new cycle.
End of Elliott wave. Next article: Find accumulated points by MM.

Lesson 3 belongs to the Elliott wave series
When MM holds large enough volume to manipulate the market, when taking profits, they cannot use a few orders. If they use a few orders to close, the market will immediately collapse and they will lose money. Furthermore, large volumes in a few orders will cause lack of liquidity (supply out of phase with demand). Therefore, to take profits, MM is required to distribute.
MM's distribution method is to continue to push the price up, the right hand buys, the left hand sells, the price pushes up, the buying volume is less than the selling volume (distribution).
As mentioned in the previous article, MM will take profit at the end of wave 3 Elliott. Therefore, wave 4 and wave 5 of Elliott belong to the distribution phase according to Wyckoff.
Wave 4 is meant to test liquidity to see if purchasing power is strong or not so that MM can have a reasonable distribution plan. For example, with high purchasing power, they distribute more aggressively and sell goods faster. Wave 4 also gives MM the opportunity to sell more and entice traders to buy.
Wave 5 is the wave in which, after calculating distribution, MM will plan how much volume to sell, how much volume to buy back, and how much to push the price up. Usually, the price push in wave 5 happens slowly because MM has to split the volume. (Additional to the previous article: the price push in wave 3 happens quickly to create fomo, preventing traders' opportunities).
At the end of wave 5, MM's distribution will be completed. At that time, the market falls into a state of self-adjustment according to supply and demand, so we often see a sideways phase at the top of the cycle.
At the peak of the sideway price, many traders begin to realize that it is the peak, begin to sell and cause a chain effect, at which point the market collapses and a downtrend occurs.
(continued)

Have you seen anything yet? Short also dies and long also dies.

Lesson 2 - Elliott wave series - Impulse wave number 3.
As mentioned in the previous article, wave 1 and wave 2 of Elliott belong to the liquidity testing phase (success) of Wyckoff theory.
So when the liquidity check is complete, MM will make a profit by pushing the price up to the pre-determined profit point. This process is Elliott's impulse wave 3. This wave is very important for traders because often traders cannot recognize wave 1 and wave 2 (can only observe volume and price behavior). Traders recognize the market during the uptrend season in wave 3.
MM's way of pushing the price up is to sell with the right hand and buy the same volume with the left hand at increasingly higher prices. Of course, it is possible that MM distributes an insignificant amount of volume to Traders to create liquidity and create fomo.
Elliott wave 3 when will it end? Traders often use fibo, while MM relies on volume and holding value to calculate profits and come up with a distribution plan (Trader cannot know) and this plan cannot be related to the Trader's fibo. But Trader should know the cost price MM bought is within the previous accumulation range because almost all the volume is accumulated there. No one knows MM's profit-taking plan. Traders can rely on previous cycles to calculate profit rates. For example, in the previous cycle of #btc, the average price of the accumulation zone was $6k; 5 years 1 cycle; Peak price is $68k. So, every year MM x2 accounts. This cycle#btcaverage accumulation is at $25k, the next cycle's peak will be $250k. Traders must also accumulate a capitalization growth factor to add. For example, the previous cycle#btchad the largest capitalization at $20k peak of $400 million 👇

Do you understand the true nature of Elliott and Wyckoff waves???
Many traders only pay attention to Elliott waves through 5 waves (3 impulse waves, 2 retracement waves) and they mechanically calculate the indicators of each wave in a textbook way.
The true nature of Elliott waves is explained by Wyckoff's phase theory.
According to Wyckoff, the phases of the cycle include:
- Accumulation phase: To bring the market (collectively called Market) up, it is necessary to accumulate enough volume to be able to "manipulate" the market. Therefore, the larger the capitalization, the longer the accumulation process.
So when does the Market Maker (referred to as MM) know that he has accumulated enough volume?? 👇
- Phase 2: Check liquidity (test run, test push, test dump). To know if you have accumulated enough volume, MM uses a liquidity check plan. When they accumulate to the stage of exhausted liquidity (the telltale sign for Traders is the volume on the chart), MM checks liquidity by testing pushing or dumping the price beyond the accumulated price range. If the liquidity test is not met, the price will continue to return to the accumulation zone and MM will continue to accumulate.
If MM sees that during the testing process the liquidity does not increase, it means they have completed the accumulation - The successful test push creates the first rising wave, which is wave 1 of Elliott.
Wave 2 of Elliott is formed when the test push is successful and MM retests by dumping the price to the last accumulation zone, and at the same time gathering the remaining volume of impatient traders.
The accumulation process is carried out by MM in the way that the right hand sells, the left hand buys back, buying volume > selling volume.
End of P1

Will#Btcin 2023 reach 40k or return to below 8k? Don't predict but choose a reasonable plan when any scenario occurs.