$ETH Daily Level: The ABC adjustment is highly likely to come, Wave A 4794-4364, a decline of 430 points, Wave B 4364-4575, basically the Fibonacci 0.5 retracement point. According to the calculation principle of the zigzag ABC waves, Wave C is equal to the length of Wave A, so the calculated target position is 4575 - (4794-4364) = 4145; The previous analysis at the 4H level mentioned that 4794-4364 belongs to a simple ABC adjustment, which is the first wave of the W zigzag adjustment. Yesterday, 4364-4575 belonged to the X wave rebound, so will the decline starting from 4575 be a Y wave zigzag adjustment? Will the adjustment target be around 4150? The rest will be left to the market to answer.

A saying from wave theory goes, “Although wave theory is currently the best forecasting tool, it is primarily not a forecasting tool; it is a detailed description of market behavior.” Technical analysis is just a means, and wave theory combined with Japanese candlestick patterns and Murphy's financial market technical analysis verifies from multiple perspectives. We use technical analysts to determine the risk-reward ratio; only in this way can we form a trading method based on risk and profit management. How to determine risk? It is to set protective stop-loss orders to help us guard against unforeseen risks.