#Description of Wave Theory:
Pay attention to the current market. According to the wave theory level, it should be a small-level 3 wave. Compare the description of wave 2 to see if it is the same as the next wave.
Wave 1: Bottom building and rising
It is part of the bottoming pattern. The trading volume and market width have increased significantly. The market only regards it as a large rebound.
Wave 2: Consolidation and washing
The adjustment range is large, often eating up most of the first wave (even very close to the starting point of the first wave), the trading volume shrinks, and the fluctuation range gradually narrows. The market often believes that the bear market has not ended.
Wave 3: Strong pull-up
This wave is the most explosive, and the rising range and space are often the largest. In many cases, it will develop into an extended wave of rising again and again; the trading volume is sharply enlarged, and the rising momentum is full.
Wave 4: Profit taking
Wave 4 actually lays the foundation for the creation of bubbles in wave 5. The morphological structure often runs in a triangular adjustment pattern.
Wave 5: Continued rise
The price of the currency circle is seriously overestimated (bubble). The rise of wave 5 is mostly smaller than that of wave 3. The original leading sectors or coins retreat to the second line, and the original second- and third-tier coins generally rise; the trading volume begins to diverge. Market sentiment is often higher, and optimism fills the market.
Wave A: Adjustment and reversal wave.
This wave is generated immediately after wave 5, so most people in the market believe that the general trend is still there, and there is no psychological defense against falling. They only regard the decline as a short-term adjustment and believe that it will continue to create new highs after the adjustment.
Wave B: Reversal and rebound wave (bull trap wave)
Most people in the market still regard it as a new round of rising waves; but at this time, the trading volume is sparse, and the phenomenon of price-volume divergence often occurs, and the rising volume is obviously not enough.
Wave C: Rapid decline
Because the completion of wave B makes many people in the market realize that a round of bull market has ended, and the hope of continuing to rise is shattered, so it often begins to fall across the board. In nature, the destructive power of wave C is stronger.
Explanation: Wave A and wave C are often twin brothers. If wave A appears in 5 waves, wave C will most likely also need 5 waves to end. But in terms of time period, if the speed or amplitude of wave A is too large, wave C may take the form of exchanging time for space.#BTCis currently in which wave of callback, do you know?
