Adjustments Wave Detailed - part 2

 AdjustmentsABCWaves

In the zigzag pattern case
Wave A is 5 waves - Wave B is 3 waves - Wave C is 5 waves

In the flat pattern case
Wave A is 3 waves - Wave B is 3 waves - Wave C is 5 waves

Except for Wave A, the rest are exactly the same. If you watch out for Wave A, Waves B and C are the same, so it's easy to memorize.
So what does that mean? = When trading, the best method is to discard Waves A and B and bet on Wave C.
Waiting patiently is also part of trading.

Notes
・Wave B may approach the start point of Wave A (full retracement) or even exceed it (irregular top).

This irregular top cannot be known until later, so at that time you’re at a loss.

・In a flat pattern, the initial wave is 3 waves, so it’s easy to mistake that B and C are finished.
Was that a bit hard to understand??

This is describing a different level.A level higher. If you understand this, you’re probably quite proficient.

I’ll write more about this area at another opportunity.

・The second wave B is composed of 3 waves and does not show a complete rise.

Basic point: an uptrend (downtrend) is only considered a trend when both the highs and lows are rising. When it becomes a 3-wave structure, the lows rise, but the highs do not. Thereforeit is an incomplete trend (a correction).

 

Zigzag Pattern Characteristics

[AWave andB wave retracement and time relationship]

Point

If you look at the diagram above, you may understand that,

・A wave andC wave are subdivided into 5 waves.
・The initial target of Wave C is at the pointA=C
・The retracement of Wave B ends atA wave’s price range61.8％ or less
・Time spent in Wave A is shorter than time spent in Wave B. It’s good to remember. Explaining with the downward pattern in the diagram above.

What I want to say is,

We look at the drop magnitude and the time taken for that drop. (Wave A)A wave

Then compare with the subsequent rise (Wave B).B wave

We compare these.

Compared to the drop magnitude and time of Wave A, Wave B takes longer to rise and has a smaller amplitude.

With this, you can predict that this is a correction wave!

With that in mind, the retracement zone (61.8% of Wave A) from which Wave C is aimed becomes the most reliable and straightforward way to attack the correction wave.

The probability is high but not guaranteed, so it is important to always place a stop to avoid dragging it out.

To be continued... Next is the Flat pattern.