I just realized that many of you still confuse when counting Elliott waves, especially when choosing entry points. Today I want to share the way I count Elliott waves that I often use, which can help you optimize your entry points.

The most important thing is to understand these three basic principles—if you violate them, your counting will definitely be wrong:

First, wave 2 can never retrace more than 100% of wave 1. This is the golden rule that I always check first.

Second, wave 3 is never the shortest among the three impulse waves (waves 1, 3, and 5). It is usually the strongest wave or at least equal in length to wave 1 or wave 5.

Third, wave 4 is not allowed to enter the price zone of wave 1—that is, the peak of wave 1 and the trough of wave 4 cannot overlap. This is also easy to violate if you're not careful.

I usually apply these three rules when analyzing Elliott waves on BTC and ETH. If you follow them, choosing the right entry point will be much more accurate. In fact, when you count Elliott waves correctly, you'll avoid wrong entries and catch real opportunities.

Try applying them now and see the results. This is one of the fundamental skills that every trader needs to master.