Hi guys. ๐Well, let's continue develop ourselves???๐ช๐ป
Ok, now let's start from the few words about theory of cycles๐ช๐ป
๐The theory of cycles is more developed at the theoretical than at the practical level, and deals with cyclical fluctuations not only in prices, but also in natural phenomena in general. Almost all methods of technical analysis fit into this classification.โ
๐ฅIf you wanna be successful trader, you need to understand this method of analysis๐ฅ
โ๐ป The trend (impulse waves) has a 5-wave structure (waves are indicated by the numbers 1,2,3,4,5, A, B, C) and consists of impulse waves and correction.
๐ Impulse Waves 1,3,5
- longer than correction waves - show the direction of the trend
๐ Correction Waves 2 and 4
- has a 3-wave structure (a-b-c) - show the direction opposite to the current trend
โ๐ป 1st, 3rd, 5th impulse waves have a 5-wave structure of their subwaves. Correction waves (2 and 4) have a 3-wave structure and are denoted by A-B-C.
๐ Signs of a trend reversal in terms of wave analysis are:
๐๐ปThe 2nd and 4th waves are corrective. The movement on these waves takes the form of the following correction models:
- zigzags (5-3-5) (Zigzags) or simple ( zigzag ) correction - planes (3-3-5) (Flats) or flat (flat) correction - triangles (3-3-3-3-3-3) (Triangles) or triangular correction - double triples and triple triples (combined structures) - incorrect correction
In fact, wave analysis has nothing to do with the market. At least in the modern world. This theory once worked, but not now.
โ๐ปAlthough it attracts a lot of people with its simplicity and visibility.
Now you will not find two wave operators, that would give the same market assessment and forecasts. So many directions and methods of wave analysis have formed today.
Wave analysis is an artificially invented method for predicting markets, that is, not natural even for human behavior.
๐ฅIf you use it, then be extremely careful. To say, that wave analysis doesn't work is too subjective. Each for himself decides what and how to use. ๐Right or wrong - the market will judge by adding or taking money to the account.๐
๐คI hope I have clearly explained you my vision of wave analysis, if you are interested, you can study this method more deeply.๐ช๐ป๐ช๐ป
๐ธSubscribe and don't forget to put like to my enthusiasm, I try for you๐๐๐