I have just summarized the essential knowledge about Elliott Waves, especially how to count waves and choose appropriate entry points. This is a quite important skill if you want to trade more systematically.

The main thing is to master the 3 basic principles of Elliott Waves, which must not be violated:

First, Wave 2 never retraces more than 100% of Wave 1. If you see this happening, you might have miscounted the waves.

Second, Wave 3 cannot be the shortest among the three impulse waves (waves 1, 3, and 5). Usually, Wave 3 will be the strongest wave or at least equal to one of the other two waves.

Third, Wave 4 is not allowed to intrude into the price territory of Wave 1. In other words, the peak of Wave 1 and the trough of Wave 4 must not overlap.

Once you understand how to count Elliott Waves according to these 3 principles, selecting entry points will become much more accurate. I usually apply this when monitoring BTC, ETH, and other coins, and the results are quite stable.

If you're new to Elliott Wave analysis, start with high-liquidity markets like Bitcoin or Ethereum. Once familiar, you'll see this pattern appear quite often. That’s the power of mastering this theory.