There are several issues that need to be clarified when applying the wave theory. 1. Three iron laws: that is, the third wave is not the shortest. Many people say that the third wave in the driving wave is often the shortest; the first and fourth waves do not overlap, and the two often appear together; the second wave retracement will not eat up the overall amplitude of the first wave. If it does, it is not the relationship between the first wave and the second wave, but the relationship between the A wave and the B wave. The A wave often eats up the amplitude space of the previous wave, because the appearance of the A wave represents the change of the previous trend. When the new trend comes, part of the B wave will also eat up the space of the A wave and reach the starting point of the A wave, which forms the trend of breaking the head and breaking the corner. This is a sign that the market will be strong and bullish after the subsequent C wave comes out, and even the adjustment is rising.
Many content levels about the wave theory are changing back and forth on the three laws of driving waves. It looks simple, but it is actually difficult to stick to it. If you are proficient in mastering the three iron laws of driving waves, you can also master the three laws of driving waves. The difference is that the first wave, the fourth wave, and the fourth wave overlap in the driving wave.
In summary, many times it is just like the similarities and differences taught by elementary school teachers after class when we were young. Both the driving wave and the impulse wave have three waves, and the shortest wave is two waves, which will not eat up the amplitude of the first wave. The difference is that the first wave and the fourth wave overlap in the driving wave, while the first wave and the fourth wave cannot overlap in the impulse wave.
When we understand these, the rest is to use them flexibly. We cannot count the waves rigidly, nor can we make the final trading decision rigidly based on the price ratio of the wave type in the wave theory (in many cases, the price ratio of the wave is not accurate), especially in contract trading. In the absence of perfect position management, winning nine times and losing once is a big loss.
As mentioned earlier, trend is more important than position, and position is more important than form. Regarding driving waves and impulse waves, it is a description based on form. The difference between the two is whether the internal first wave and the fourth wave overlap. Another difference is the position. Driving waves often appear at the end of a trend or the beginning of a trend. And impulse waves can appear in waves 1, 3, 5, A, and C. (To be continued)
Many content levels about the wave theory are changing back and forth on the three laws of driving waves. It looks simple, but it is actually difficult to stick to it. If you are proficient in mastering the three iron laws of driving waves, you can also master the three laws of driving waves. The difference is that the first wave, the fourth wave, and the fourth wave overlap in the driving wave.
In summary, many times it is just like the similarities and differences taught by elementary school teachers after class when we were young. Both the driving wave and the impulse wave have three waves, and the shortest wave is two waves, which will not eat up the amplitude of the first wave. The difference is that the first wave and the fourth wave overlap in the driving wave, while the first wave and the fourth wave cannot overlap in the impulse wave.
When we understand these, the rest is to use them flexibly. We cannot count the waves rigidly, nor can we make the final trading decision rigidly based on the price ratio of the wave type in the wave theory (in many cases, the price ratio of the wave is not accurate), especially in contract trading. In the absence of perfect position management, winning nine times and losing once is a big loss.
As mentioned earlier, trend is more important than position, and position is more important than form. Regarding driving waves and impulse waves, it is a description based on form. The difference between the two is whether the internal first wave and the fourth wave overlap. Another difference is the position. Driving waves often appear at the end of a trend or the beginning of a trend. And impulse waves can appear in waves 1, 3, 5, A, and C. (To be continued)