Elliott Waves. Why?

1. Basic principle of Elliott waves

The market moves in 5 impulse waves (trend) + 3 corrective (retracement).

Impulse (5 waves):

1 ▲ (start of trend)

2 ▼ (correction)

3 ▲ (strongest wave)

4 ▼ (correction)

5 ▲ (final thrust)

Correction (3 waves):

A ▼

B ▲

C ▼

Example for TON/USDT:

If the price rose from 2.50 to 3.20 (5 waves), it may now go through correction A-B-C to 2.80–2.90.

2. How to identify waves?

- Wave 3: The longest, never shorter than 1 and 5.

- Wave 4: Does not enter the territory of wave 1 (no overlap rule).

- Wave 5: Often divergence RSI/MACD (weakening trend).

3. Corrective waves (A-B-C)

- Types of corrections: Zigzag, flat, triangle.

- Wave B: Usually 50–61.8% of wave A.

Example for $TON

:

If A fell from 3.20 to 2.90, then B can retrace to 3.00–3.05 (50% Fibo), then C to 2.80.

4. Practical application

Scenario for TON/USDT:

- If the current drop is wave 4, then after its completion we expect wave 5 up.

- If this is wave A of the correction, then the target for wave C is below 2.90.

5. Beginner mistakes

Too early entry: Wait for the structure to complete (e.g., the entire 5-wave structure).

Ignoring volumes: Wave 3 should be confirmed by high volume.

- Wrong timeframe: On 1D/4H waves are clearer than on 15M.

💡 Check #yourself:

1. Look at the TON/USDT chart (4H/1D).

2. Try to outline the last 5 waves.

3. Determine where the price is now: in an impulse or correction? #CryptoAdoption