Introduction to Elliott Wave Analysis in ChainLink Trading
LINKUSD Elliott Wave Technical Analysis
Elliott Wave Analysis offers a dynamic approach to trading, particularly when applied to cryptocurrencies like ChainLink (LINKUSD). This method provides insights into market trends and potential reversals, useful for traders looking to optimize their strategies. In this article, we will explore the detailed Elliott Wave structures identified in the daily and H4 charts of LINKUSD, alongside strategic trading advice and technical indicator assessments.
Daily Chart Insights: Navigating Counter Trends and Corrections
ChainLink/ U.S. dollar(LINKUSD) Pair Analysis
Function: Counter Trend
Mode: Corrective
Structure: Zigzag
Position: Wave C
Direction Next higher Degrees: Wave (I) of Impulse
Wave Cancel invalid Level: 8.498
Details: the corrective of Wave (II) is equal to 61.8% of Wave (I) at 8.702 Log scale chart
Understanding LINKUSD’s Corrective Patterns The Elliott Wave pattern on the daily chart of LINKUSD shows a typical corrective structure with a zigzag formation. Currently, LINKUSD is positioned in Wave C, suggesting an impending completion of this pattern. This wave is crucial as it can indicate potential reversal points.
Key Levels and Predictions According to our analysis, Wave C aligns with the next higher degree, Wave (I) of an impulse, suggesting a broader bullish context may follow this correction. The invalidation point for this setup is at 8.498, with a significant Fibonacci retracement level at 8.702 on a logarithmic scale, offering a strategic point for potential entry.
Trading Strategy for LINKUSD Short-term traders should monitor the 10.585 level, as LINKUSD is expected to test this support before possibly resuming an upward trajectory in the third wave. The strategy involves waiting for the completion of the current correction to capitalize on the subsequent bullish momentum.
Technical Indicators Overview The daily chart's technical indicators show LINKUSD trading above the 200-day moving average (MA200), typically a bearish signal. However, the presence of bearish momentum on the Wave Oscillator underscores the current downtrend, aligning with our corrective phase analysis.
4H Chart Analysis: Following the Motive Waves
LINKUSD Elliott Wave Technical Analysis
Function: Follow Trend
Mode: Motive
Structure: Impulse
Position: Wave 5
Direction Next higher Degrees: Wave ((C)) of Zigzag
Wave Cancel invalid Level: 81.238
Details: The Five-Wave Decline of Wave ((C)) trend to test 11.582 Level
Insight into LINKUSD’s Motive Phase On the H4 chart, LINKUSD exhibits a motive structure, specifically in Wave 5, which is part of a larger impulse pattern. This setup indicates a continuation of the existing trend, with the current wave positioned to potentially complete the impulse sequence.
Critical Levels to Watch The invalidation level for this bullish outlook is notably higher at 81.238, with the current wave anticipated to challenge the 11.582 level. This key resistance must be watched closely as it could signify the end of the impulse wave and a shift in market dynamics.
Trading Strategy Considerations Similar to the daily chart strategy, traders should prepare for potential pullbacks to the 10.585 level, offering a viable entry point. The expected upward movement in the third wave presents a significant opportunity for profit in the short to medium term.
Review of Technical Indicators Technical indicators on the H4 chart reinforce the analysis presented. With LINKUSD still trading above the MA200, the market remains in a broader downtrend. Additionally, the Wave Oscillator's bearish momentum supports the potential for further declines before the bullish impulse resumes.
Technical Analyst: Kittiampon Somboonsod
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Conclusion: Strategic Approaches and Market Outlook Elliott Wave Analysis provides a structured framework for understanding and anticipating market movements in LINKUSD. Both the daily and H4 charts suggest a complex interplay of corrective and motive waves, offering multiple strategic entry points for traders. By closely monitoring the identified levels and adjusting strategies accordingly, traders can enhance their chances of success in the volatile cryptocurrency market.