Use Elliot Wave to determine your stop losses

While other charting methods are good for determining support regions, divergences etc., the biggest benefit I get from Elliot Wave is to determine stop losses.

Opponents of Elliot Wave are always saying that it's so random and changes all the time. Of course - no-one can predict the market, we can only study the waves which represent market sentiment. The actual start and end of waves, and whether we are on a corrective subwave or have started a new wave are often up in the air.

So what is it good for then? Because charting a bullish or bearish count gives you the price movement that determines your stop losses. BTC is so volatile, it will go up and down $200 within minutes and it's hard to determine whether we are still on the same bullish/bearish path or not.

So understanding Elliot Waves, and the gold rule that "wave 4 cannot retrace back into wave 1" and the guideline that "corrective waves do not trace before the start of the previous impulse wave" will determine your stop loss points.

The price hit 9070 just now and now looks like a huge crash down to 8930. My chart says we are still on a bullish wave. Don't sell. If you look at the chart, you can see where you actual stop loss point should be. If your stop loss triggers, that means we have charted it wrong - but at least you didn't sell when it was still going up.

Also - I think the best times to buy on a bullish 12345 wave is at the start of wave 1, and the end of wave 2. Those are the safest entry points because you can set stop losses at those points and have a very very high probability of not losing money. At any other point, there's a possibility for the price to retrace below your buy-in price and still be on the same bullish path.