What is the Elliott Wave Theory?

Elliott Wave Theory (EWT) is a principle positing that market
movements follow the psychology of market participants. While
it’s used in many technical analysis strategies, it isn’t an indicator
or specific trading technique. Rather, it’s a way to analyze the
market structure.

The Elliott Wave pattern can typically be identified in a series of
eight waves, each of which is either a Motive Wave or a Corrective
Wave. You would have five Motive Waves that follow the general
trend, and three Corrective Waves that move against it. The Elliott
Wave Theory isn’t foolproof, so it should not be viewed as an
exact science. That said, many traders have had great success by
combining EWT with other technical analysis tools.

What is the Wyckoff Method?
The Wyckoff Method is an extensive trading and investing strategy
that was developed by Charles Wyckoff in the 1930s. His work is
widely regarded as a cornerstone of modern technical analysis
techniques across numerous financial markets.

Wyckoff proposed three fundamental laws — the law of supply
and demand, the Law of Cause and Effect, and the Law of Effort
vs. Result. He also formulated the Composite Man theory,
which has significant overlap with Charles Dow’s breakdown of
primary trends. His work in this area is particularly valuable to
cryptocurrency traders.

On the practical side of things, the Wyckoff Method itself is a fivestep approach to trading. It can be broken down as follows:

• Determine the trend: what’s it like now, and where is it headed?
  • Identify strong assets: are they moving with the market or in
  the opposite direction?
  • Find assets with sufficient Cause: is there enough reason to
  enter the position? Do the risks make the potential reward
  worth it?•
• Assess the likelihood of the movement: do things like Wyckoff’s Buying and Selling Tests point to a possible movement?
• What do the price and volume suggest? Is this asset ready to move?
• Time your entry: how are the assets looking in relation to the
  general market? When is the best time to enter a position?
• The Wyckoff Method was introduced almost a century ago, but
  it remains highly relevant to this day. The scope of Wyckoff’s
  research was vast, and therefore the above should only be seen as
  a very condensed overview. It’s recommended that you explore his
  work in more depth, as it provides indispensable technical analysis
  knowledge. Start with The Wyckoff Method Explained