My system tells me that this should be said together.
Originally, according to the Chaos Theory, we should talk about the trend types of Chaos Theory here, but I think it would be better to introduce the concept of the center into the wave.
In fact, the adjustment waves in the waves are all centers, but the symbols of the Chaos Theory are big and small, AB, C, buy one, buy two, buy three, and sell, which I think are too complicated.
Here I will simply say a few words about my definition of waves. It is just my personal opinion.
I define the 12345 wave as the departure segment of two centers. As long as two centers are formed and there are entry segments and departure segments, I usually treat it as a driving wave structure. The driving wave is 12345.
As shown in the figure:
Wave B in the ABC three-wave trend type is defined as a secondary central structure, so if there is an entry segment, there must be an exit segment.
The entry segment is A and the exit segment is naturally wave C.
As shown in the figure:
There are differences in the market regarding the expansionary center in the trend type. Some people think it is wave 12345, and some people think it is ABC of center 1. In fact, this trend is the contact between the top of wave 1 and the bottom of wave 4. So should it be defined as a driving wave structure?
I think it depends on the intensity, magnitude and market of the contact. The contact of news is generally divided into bull and bear markets.
A bull market is real and a bear market is fake.
But no matter whether it is a bull or bear market, this will only affect the subsequent trend and will not affect the current trend.
As shown in the figure:
Okay, that’s it for this lesson, next lesson level!