Elliott Waves failure is a critical indicator of bearish trend. The optimal situation is Wave 2 retraces to the .618 mark (golden ratio), going further indicates a potential bearish trend. But a failure where wave 2 retraces below wave 1 indicates there is a likely scenario for a further drop in price.
A potential stop loss can be place at slightly below wave 1.
Every time there is a wave failure, we need to go back to the recent lowest point, and draw a fib retracement to the top of the first wave. Use the levels in the fib retrace to identify support levels.
At the time of his recording (around 2/11/2018), Philakone doesn’t believe $6,000 is a permanent support because it hasn’t been tested multiple times. It looks like it is established as a support at this time (tested 3x since 3/30).
3-3-5 structure (Flats)
Elliott Wave Double Combo
Truncated C
He called it pretty much dead on for the bottom on 2/11 at 7,850 for BTC.
Links: https://elliottwave-forecast.com/elliott-wave-theory/
http://stockcharts.com/school/doku.php?id=chart_school:market_analysis:identifying_elliott_wave_patterns
http://www.lifestyletrading101.com/elliott-wave-truncated-5th-wave/
▶️ DTube
▶️ IPFS