The previous article explained some basic rules of waves. This article explains in detail the complexity of the adjustment wave.

Regarding the adjustment wave, I am just throwing out some ideas. I welcome your comments.

1 single sawtooth

A single zigzag is defined as three strokes, ABC, where wave A is the driving wave, 12345, wave B is ABC, and wave C is 12345.

The trend of a single zigzag is relatively clear and easy to define.

The rebound amplitude of wave b is between 0.382-0.618 of wave A. This depends on the strength of the market rebound.

In terms of proportion, wave C is 1-1.618 of wave A, and the AC intervals are relatively large.

2Platform

As shown below:

The platform shape is more complex and difficult to define. The basic rule is ABC, and the internal structure is 335, which means A has three strokes, B has three strokes, and C has five strokes.

This is just a basic rule. Platform shapes often appear in the trend of Bitcoin. Breaking through the top and breaking the bottom. Breaking through the top but not breaking the bottom.

Breaking through the bottom  Breaking through the bottom means that wave B breaks through the starting point of wave A and wave C breaks through the end point of wave A.

Breaking through the head but not the bottom. Breaking through the head means that wave B breaks through the starting point of wave A. Wave C does not break through the end point of wave A. Breaking through the head but not the bottom.

When encountering this kind of trend, you can only passively take the beating! There is no other feasible operation. This has been my experience over the years.

In the subsequent copywriting, I will give you a tendency to define the time dimension and channel.

In terms of proportion, wave C is 0.382-0.618-1-1.618 of wave A.

3 double sawtooth

As shown below:

Double serration actually means exactly what it says. Single serration is ABC, so double serration is naturally the combination of two single serrations.

Defined as wxy, w equals ABC, X is any three waves. It can be a platform shape, or a triangle oscillation as a relay, or it can be an ABC single sawtooth shape. In short, X is any shape of adjustment wave.

The target of the double zigzag is very simple. Wave Y is 100% of wave w, or 0.618, 1.618, and so on.

There is another situation where wave Y does not break through the top of wave W, and wave Y performs triangular oscillation to exhaust the potential energy of wave Y. This trend exists. I won’t tell ordinary people about it, and this type of trend will not be mentioned in books.

4 triangle

As shown below:

The definition of the triangle is ABCDE, where the internal sub-wave structure is 33333. Wave B does not break through the top of wave A, and its amplitude is 0.618 of wave A. The amplitudes of waves C, D and E are all 0.618. This is the case in most cases. Specifically, as long as it does not fall below or breaks through the top or bottom, it is allowed.

Generally, triangles in the rising process will break through, while triangles in the falling process will break through.

5 three-tooth

The triple sawtooth is an extension of the double sawtooth. It just adds a wave Z to wxy.

Wave Z is actually the same structure as any wave in WY. The three-tooth structure is generally only used as a reference and rarely occurs in the market.

I personally define the triple zigzag as wave A, wave C, or wave 1 in the Bitcoin market.

Because in this irregular market, the three-tooth pattern often overlaps with the driving wave. It is difficult to define it in the cryptocurrency market.