Foreign Stop loss just below 10 cents would have Been Um because I told you that we had a Chance to Rally here in the fifth wave From the yellow support box here so Obviously what we were waiting for with Doge to confirm that we were in um let's Say a possible breakout pattern we Wanted to see five waves up we needed to See those five waves up until you get Five waves to the upside You can't really confirm that something Is in a bullish breakout pattern as per The Elliot wave method that's why it's So useful because you can get much more Confidence in a chart as soon as you see Five waves gave you here the yellow Support area in which I said if it turns Around in a wave 5 it ideally needs to Do it here shouldn't really go below That and we came down pretty much to That 10 cent level which was the lower Support in the box and dropped below the Nick you can see how useful a stop loss Below that level would have been and That's exactly the benefit of the elite Waves you can enter a trade With very low Um let's say risk but higher reward if You know where those invalidation points Are or below which levels a move is Getting much less likely and that would Have been here a move below 10 cents
Made a direct breakout much less likely It's it's far it's not ideal that we've Dropped that far I have to say that as Well and we take a look at the Possibilities now so the scenario was That this could have been a wave one Here or two Here are three hero4 which should have Bottomed above 10 cents and then a move Up in five that would have been the Ideal pattern that would have given us Much more confidence in Dogecoin okay The problem that we have now is that We've dropped below this area and Because we've dropped below 10 cents This is not a great Um scenario anymore and it has basically Lost in credibility and takes away some Confidence because it is obviously what We are looking for is the ideal chance Right ideal wave patterns ideal Scenarios that we can trust and with the Drop below that 10 set level it is most Likely not a way for anymore because the Way 4 would normally not drop below the 50 FIP level now okay We can say we had special events in the Last few days and that is exactly the Only reason why I consider here deeper Way for this is possible not in an Impulsive wave pattern anymore but in a Diagonal so a so-called diagonal pattern Is possible here where we say all of This is some kind of a weird
Um ascending broadening wedge these two Exist and or Channel and in these Patterns You Can Count this move as a Diagonal pattern where you are also Allowed to have an overlap between Wave 1 and 4. problem with diagonal patterns Is and that's exactly the reason why I Don't like to use them very often but They are not too rare Um in a wave one of crypto yeah I went After a downtrend they are not rare oh Well not too rare so we have to consider Them and that would imply that from here We have another chance to start away Five it is nothing though that I would Put a lot of emphasis on and I would not Really trust the chart until I see those Five waves which means my personal let's Say rule or You know of course this can be traded But the point is that it just will have A much more higher likelihood Um that we actually are in a breakout Pattern when we finally see this wave 5. That means for anybody who wants Confirmation could wait for the fifth Wave to play out now bear in mind this Could Rally or that this could double Here in this fifth wave so it could Double easily Um so but yeah you know that is what we When I when will I be able to confirm That the bottom is in well First of all I would want some
Confidence in that we make a fifth wave To the upside Target could be the Resistance area of this channel here so Around Um let's say if that happened today we'd Be talking about 16 to 17 cents yeah and Then this would form the wave one And then I would want to see a move down In Wave 2 and the Wave 2 support area Could then be bought as a long trade the Problem here is we haven't really seen Um that fifth wave so we've only had Three waves up which increases the risk That we are in the red count wave three Down wave four up in a corrective Pattern w x y and we're now coming down In wave 5. yeah Um so what we need to understand it's Technically still possible to Rally in a Wave 5. But um I would like to see that first Now happen before I get more confident In this chart it would have been ideal To make the move from here this would Have given us five clear waves and I Would say now that this is a clear entry Point because it is then the wave 2. do You know what I mean so had we really Seen that fifth wave already And with heads in the wave one then we Would be in the Wave 2 drop now and I Would confirm this is for me personally A great entry point because you have a Clear one two setup here we don't have
One I hope that is clear there is one More possibility to count this in a Bullish way where we can say we had a One two setup here and another one to Set up here that's possible Um And that would allow us to um to Define It as a possible entry point a one two One two setup that would be the bullish Interpretation Because we did hold the 78.6 percent Fibonacci retracement but also one two One two setups they are not ideal Because they are if you have such a deep Wave too in um Let's say in the second one two setup it Just again it loses credibility a little Bit but yeah by all means what I can Tell you we're close to support So I won't tell you not to do anything This is entirely up to you there's a few Things to point out if this is a bullish Pattern We have come close to support yeah we Are currently in the region between the 78.6 and the 61.8 Fibonacci retrace so If we drop below out of the channel to The downside that's probably it this ID Or this view here allows you to set a Stop loss quite clearly defined Somewhere below that wave wave low here So below seven cents now I'm not telling You to do it you need to decide that but This is a low risk you could say a low
Risk High reward setup not necessarily In probability to work out but Uh in terms of you can set a tight stop Loss because you have a very clearly Defined invalidation point and the Reward you know it could double so you Could potentially risk let's say two Cents for a possible Um eight cents profit right just just to Give you an idea Um But all I'm saying is this is not high Confidence in terms of probability of Working out we have we will have much More probability of working out as soon As we see the fifth wave up and then buy The Rave 2 retracing uh The Wave 2 Um Target area yeah if we now go below The Espio below yesterday's low at seven Cents um and below the trend line I Think then it's quite clear then we are Losing support and we have a big big Risk to re-test the five cent level the June low and will most likely break it Hope you like the updates if you did Please hit the like button leave a Comment and subscribe and if you really Like the content please check out the Channel membership thanks a lot for Watching bye