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RE: Bitcoin BTC - Feb 10 Morning Update - Detailed Technical Analysis - Correction Target $4800-$5200

in #bitcoin6 years ago

One shouldn't include the wicks when drawing the waves. I zoomed in quite a bit, then drew a horizontal line showing that the top of wave 1 wasn't penetrated by the bottom of wave 4, if you're using only the candles:

You might need to open the image in a separate tab, in order to see the horizontal line though -- it's a red line, only one pixel tall.

You could also draw waves 1 and 2 closer to the bottom of the chart, and then wave 3 would be a 5-wave impulse up to the same 3/4/5 you have, and they'd definitely not overlap.

Or you could draw (with either way of starting waves 1 and 2) the top of wave 3 to be the peak just before 5, with a short 4 and 5. Wave 3 tends to be the longest, but doesn't have to be -- it just can't be the shortest. So there are various ways to map it.

That said, 1, 3, and 5 tend to be composed of 5-wave impulses, where 2 and 4 tend to be composed of 3-wave retracements. So the way it's drawn initially seems to be most correct. I appreciate any pointers, I'm fairly new at this.