The wave theory is indeed an important tool for analyzing the market, and your summarized points are very practical! Here is a summary of the key points you mentioned:
1. Level Stability: Higher level waves are more stable, while lower level waves are more volatile. Lower level waves support higher level waves, and higher level waves contain lower level waves, which helps accurately identify waves.
2. Trend and Chaos: Impulsive waves represent strong trends, while corrective waves indicate weak chaos. Focusing on potential impulsive wave trades helps improve the win rate.
3. Aesthetics and Symmetry: The shapes of waves need to be aesthetically pleasing and symmetrical, which is an important visual guide in analysis.
4. Understanding Basic Rules: Mastering the basic rules of wave theory is necessary to help you better identify and predict market trends.
5. Practical Application Skills: Understanding that wave 2 cannot go below the starting point of wave 1, and wave 4 cannot enter the range of wave 1 helps identify and participate in trades of wave 3, which is an effective practical strategy.
These points can help traders apply wave theory more effectively and increase the chances of trading success! If you have other thoughts or examples, feel free to share!