Technical analysis by ElliottWaveStrategy about Symbol BTC: Sell recommendation (5/8/2023)

#BTCUSD - 2H - Elliott Wave Analysis The impulse waves are subdivided into five smaller waves, labeled 1, 2, 3, 4 and 5. The corrective waves are subdivided into three smaller waves, labeled A, B and C. The basic pattern of the Elliott Wave Principle is a 5-3 move, where five waves form an impulse, followed by three waves forming a correction. Now, let’s focus on the 3rd wave of the impulse. This wave is usually the most powerful and the longest of the five waves, as it reflects a strong trend in the direction of the main trend. The 3rd wave is also the most profitable wave for traders, as it offers the best risk-reward ratio and the highest probability of success. The goal of the 3rd wave is to extend beyond the end of the 1st wave by a certain ratio. The most common ratio is 1.618, which is derived from the Fibonacci sequence. This means that the length of the 3rd wave should be 1.618 times the length of the 1st wave. Some other ratios that are used are 2.618, 3.618 and 4.236. The reason why traders target these ratios is because they are based on natural laws and patterns that govern not only financial markets, but also many phenomena in nature, art and science. These ratios reflect the harmony and proportion that exist in nature and human perception.