According to the basic knowledge of wave theory I mentioned earlier, everyone understands that market trends have certain patterns to follow. This pattern is that the market completes a cyclical rise or fall, usually through 5 waves of rise or 5 waves of fall, which is often referred to as 3 rises or 3 falls. However, the market can also experience 5, 6, or even more waves of rise or fall.
Talking through the chart: The 3rd and 5th waves in wave theory are basically in the middle of a rising market.
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After the initial rising phase, the market enters the mid-stage of the rise. According to wave theory, it is not difficult to find that the mid-term of a rising market is basically the 3rd and 5th waves of wave theory.
Once an upward trend is formed, we can enter long positions at the pullback points of the 2nd and 4th waves based on the principle of trading with the trend and against the minor corrections. Retail investors find it hard to catch the initial rise of the 1st wave, but they can catch the rise of the 3rd wave and hold on until the 5th wave, or even higher points. As long as the market is not disrupted, theoretically, it can be held indefinitely.