Why is wave 3 a good buying point for cryptocurrency trading?
Novices, read carefully and you will find it useful information! ! !
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From big losses to counterattacks, I have tried many methods, but the wave theory has given me the most profound experience. Today I will share my practical experience of the wave theory over the years. Although the method is simple, it is rich in content and worth collecting.
To understand swing trading, you must first master the wave structure. Simply put, the five-wave driving pattern, that is, the rising five waves, drives the price up in an upward trend; and the three-wave adjustment pattern, that is, the falling three waves, drives the price down in a downward trend.
From the perspective of wave theory, buying point 1 is when the trend just starts to reverse. At this stage, the market has just started and the safety factor is low; buying point 2 is when the market is in a shock adjustment, and the increase is limited; buying point 3 is the starting position of the main rising wave. Usually, the increase in this wave is at least 1.5 times that of wave 1, and [at this stage] it is often easy to break out a big market. If we use the Chaos Theory to analyze, this is the resonance buying point of the large and small levels, which is highly reliable and easy to make big profits.
If you still think that the wave theory is obscure and difficult to understand, then please remember its three laws and grasp the essence of the wave theory.
Law 1: The callback of wave 2 generally does not exceed the starting point of wave 1.
Law 2: In the basic driving mode 1, 3, and 5 waves, the increase of wave 3 will not be the shortest wave.
Law 3: In the complete five-wave push, the adjustment of wave 4 will not fall to the price range of wave 1.
The above is my experience sharing in the actual combat of the wave theory over the years. As long as you master these three laws and seize the buying point of the main rising wave, I believe you can also find your own trading opportunities in the currency market. If you think these contents are helpful to you, please leave a comment in the comment area for me to see
