Defining Diagonals - Market Analysis for Jun 25th, 2019

Slow, so another write up. 

I know there are many that are new Elliott Wave Terminology. Again, I'll remind that you'll get the most out of the service if you learn some basics of the Elliott Wave Theory. The route to knowledge is first reading Prechter and Frost's 'The Elliott Wave Principle', and if wanting advanced knowledge see our webinar sections. It is the webinar section that got me a job here;).

One key concept is the diagonal. The diagonal is a five wave move that either initiates a trend in wave 1 or A, or ends a trend in 5 or C. We use the terms leading diagonal or ending diagonal depending on which. The challenge with a diagonal is they do not follow the regular fib patterns of a standard impulse. Further the subwaves 1,3,and 5 are ABCs not 5 waves. They vary widely, and the rules are much looser. So, anytime I see a diagonal, I generally back away from trading it. I might hold through a diagonal if it is part of a clear larger context. But my analysis drops in probability. Sometimes you'll see me call structure nebulous. The truth is analyzing the internal of a diagonal has little reliably except for the C waves if they show in an impulsive manner, as opposed to being ending diagonals within a larger diagonal. 

I hope this helps. And, this is why I'll often back away from analysis. I tend not to shy away as much from Ether and Bitcoin because I watch them internally, with a techical scheme giving me a slight edge. But even then, I do not lean too hard on my own point of view. 

Ryan Wilday hosts the Cryptocurrency Trading service on ElliottWaveTrader.net.