📍Intraday naked K trading - ABC three-wave trading method

When talking about three waves, you may think of EOS, but when talking about five waves, it is most likely the wave theory in technical analysis

The [ABC three waves] mentioned in this article is a simple application of the wave theory, which is one of the entire courses I took in the past when I studied technical analysis

🗝️The focus of this article: chart recognition and buying and selling point judgment, pattern changes and "trading formulas"

It should be noted that I did not use it when analyzing the market before, but I think the skill of technical analysis is to build our own system from simple to complex and then from complex to simple🔺

Finally, note: This system is not developed by individuals, so the content of this series is all personal past learning notes, only shared here for free🙏🏻

1. ABC three-wave method basic diagram ★

(1) Basic composition: see Figure 1

The simplest form is three K lines. The wave theory is more of a deductive logic, and this is also the case. Therefore, this is a left-side trading system

It also means that you need to guess that the pattern will come out before the pattern comes out

(2) Buy and sell points: see Figure 2

(3) Closing rules: see Figure 3

2. Four steps of trading🔻

(1) Entry stage: see abc, draw abc or wait for abc

(2) Market stage: 1. Hold long or short orders; 2. Exit and wait and see; in this system, there are only three steps: hold, wait and see, and stop loss

(3) Holding stage: set up defensive rules

(4) Place conditional orders: 1. Sell order, buy order; 2. Signal + Execution + Holding = Profit

3. Possible pattern - Folding Knife (Figure 4)🔻

(1) Once abc is pulled back in a straight line, a folding knife pattern is formed, which can be used as a counter-trend order

(2) This pattern often means the formation of a major trend

4. Gap application🔻

1. In an upward trend, do not go long below the gap

2. In a downward trend, do not go short above the gap

3. Once the gap is hit by a rebound, pay attention to stop loss