The MACD indicator, known as the king of technical indicators, holds significant reference value for market trends. However, there is no universal technical indicator in trading; investors must combine various technical indicators and analyze the market in a diversified manner to fully leverage the advantages of technical analysis.
The author explains the characteristics of the three phases of trend markets through multiple real cases, and these characteristics are very effective for investors to determine the current position of the market. A picture is worth a thousand words: we can preliminarily judge through the wave theory that the price should be in the third wave of the wave theory, in the mid-term of the market.
If we enter the market at this time, we can preliminarily estimate the approximate extent of the market decline and the level to which it will drop based on the wave theory, thus the wave theory serves the purpose of predicting target levels for trading.