Crypto Academy Week 14 - Homework Post for Professor @Fendit

What's the application of this theory?

The Elliot wave theory in itself is actually saying that the emotional perception of the masses greatly influences the way they invest in markets, it is based on optimism or pessismism. Thus we see when people are positive or bullish about an asset they tend to run to it and buy as much as they can making the price move up, on the other hand when the mood is pessimism they tend to sell what they have to avoid total collapse thus making prices go down.

By following these emotional patterns in waves we can get to have a feeling of when is the best time to buy and when it is the best time to sell, so we can say Elliot Waves are applied by traders in an effort to foretell how an asset or even a market will move, and by following these trends make intelligent investments that will give good returns.

Of course in able to do this a trader must have a good feeling of how the market works and use Elliot waves only as a tool that helps him out in his decision making, they are not as accurate as you would want them to be, except of course with foresight, then you can say I should have bought at this point and sold at this one. Still it is a valid tool and can be of some use.

What are impulse and corrective waves? How can you easily spot the different waves?

They are the trends in the market, the impulse waves are waves of five and the corrective waves are three in number. When an assets starts an impulse wave it will go up and then when some people sell it will go slightly down until people again see it as on a positive trend and buy again, this is the third wave, people again sell and then it goes up again for the fifth wave. After this we have a downtrend and we will see the assets price go down, slightly up and down again this is the correction.

I believe that you can spot the impulse wave on its second burst when it goes up after the first wave, to me this is the moment to sell, I think a smaller profit is better than the risk of losing. As for the correction, by the time it comes you should no longer have any of this asset. Of course the problem is the timing, you have to be perfect or nearly so to make the most of Elliot Waves.

What are your thought on this theory? Why?

My thoughts on this theory are actually not so positive, mainly it is a solid theory and well thought out, but in the money world there are so many factors that come into being that just what the masses do are not enough to identify what an asset will do, as you can see by pump and dumps, and recently with Elon Musks opinions, it is incredible but also true that just ne man can actually bend a 2 trillion dollar market just with his words. Elliot waves theory has no way of working out these type of things.

Choose a coinchart in which you were able to spot all impulse and correct waves and explain in detail what you see. Screenshots are required and make sure you name which cryptocurrency you're analyzing.

Taken from coinmarketcap.com.

Sorry, but I am not really good at Elliot Wave Theory, I just do what I can.

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