After a round of price increases, a peak was formed, and then it began to decline. This decline went through three waves of declines and two adjustments according to wave theory. Generally, when encountering such a three-wave decline, one should not blindly go short, but first observe whether the market can stabilize, and then look for opportunities to go long. Typically, after such a five-wave decline, the market will take a break, either continuing to decline or forming a bottom before starting to rebound, or even reversing the trend.
