DigixDao (DGD/BTC) initial impulse rise resulted in a near vertical wave 5 extension. Such an extension should be a bit of a warning sign for a very deep retracement as had be shown already in previous posts. However, the below chart shows an abcde option where wave A had retraced well witin the prior wave 4 level and if Bitcoin persists is upping the sentiment, this triangle has a primary count chance to breakout.
Similar but different way of labeling is to consider the correction as a complex combination of WXY (blue) and with the Y as a triangle abcde. This would require more time for the completion of c,d and e waves.
The extended 5th often retraces to priro wave 2 levels and this DGD/BTC pair could aim for that level so be aware and not be broadsided.
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Elliott Wave Counting Tutorial #1
Elliott Wave Counting Tutorial #2
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Tutorial on the use of Fibonacci & Elliott Waves
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