Why is wave 3 a good buying point for cryptocurrency trading? After pondering for a long time, I finally understood the true meaning of this picture! All transactions originated from this. From big losses to counterattacks, I have learned many methods during this period, but I really feel that the wave theory is really in my heart. Today I will share with you my experience of wave theory tactics over the years. Although the method is simple, it is rich in connotation. Collect it.

If you want to understand the basic logic of band trading, you must first understand what wave structure is. Simply put, in an upward trend, the operating mode that drives the price of the currency to rise continuously is generally a five-wave push pattern, that is, the famous rising five waves; and in a downward trend, the operating mode that drives the price to fall continuously is a three-wave adjustment pattern, that is, the famous falling three waves.

From the perspective of wave theory, buying point 1 is when the trend just starts to reverse. At this stage, the market has just started and the safety factor is low; buying point 2 is when the market is in a shock adjustment, and the increase is limited; buying point 3 is the starting position of the main rising wave. Usually, the increase in this wave is at least 1.5 times that of wave 1. [At this stage], it is often easy to break out a big market. If we use the Chaos Theory to analyze, this is the resonance buying point of the large and small levels, which is highly reliable and easy to make big profits.

If you still think that the wave theory is obscure, then please remember its three laws and grasp the essence of the wave theory.

Law 1: The callback of wave 2 generally does not exceed the starting point of wave 1.

Law 2: In the basic driving mode 1, 3, and 5 waves, the increase of wave 3 will not be the shortest wave.

Law 3: In the complete five-wave push, the adjustment of wave 4 will not fall to the price range of wave 1.