Wave characteristics
1. "Market psyche" is almost completely bearish The news is still negative
2. The market is drifting away from recent, hard - work, profitable positions.
The price can roll back almost 100% of Wave 1, but not lower that is beginning .
Usually it is about 50-60 % of Wave 1, and it develops against the background of the dominant predominance of investors who prefer to fix profit.
3. There is a sharp growth of optimism among investors.
This is most powerful and longest wave of growth
(it can't be the shortest), at which prices accelerate and volumes increase. Classical 3
Wave exceeds Wave 1 at least in 1.618 times and may be even bigger.
4. Wave is often difficult to identify. Usually it rolls back no more then 38% of Wave 3.
It's depth and duration, as a mile, is not big.
Wave 4 should not fall below the level of Wave 2.
5. Wave 5 is usually much less dynamic, than the 3 Wave.
During the 5 Wave, many confirming technical indicators begin to fall behind the price movement.
Also at this time, some oscillators start to show negative divergence, warning that the
market is moving to the top.
1. "Market psyche" is almost completely bearish The news is still negative
2. The market is drifting away from recent, hard - work, profitable positions.
The price can roll back almost 100% of Wave 1, but not lower that is beginning .
Usually it is about 50-60 % of Wave 1, and it develops against the background of the dominant predominance of investors who prefer to fix profit.
3. There is a sharp growth of optimism among investors.
This is most powerful and longest wave of growth
(it can't be the shortest), at which prices accelerate and volumes increase. Classical 3
Wave exceeds Wave 1 at least in 1.618 times and may be even bigger.
4. Wave is often difficult to identify. Usually it rolls back no more then 38% of Wave 3.
It's depth and duration, as a mile, is not big.
Wave 4 should not fall below the level of Wave 2.
5. Wave 5 is usually much less dynamic, than the 3 Wave.
During the 5 Wave, many confirming technical indicators begin to fall behind the price movement.
Also at this time, some oscillators start to show negative divergence, warning that the
market is moving to the top.
Trade active
Trade active
VIP group + EXCAVO portfolio for FREE
More info
partner.bybit.com/b/excavo
For Futures Crypto Trading without KYC
partner.bydfi.com/s/excavo
t.me/excavo - admin
t.me/excavonews
t.me/excavochannel
More info
partner.bybit.com/b/excavo
For Futures Crypto Trading without KYC
partner.bydfi.com/s/excavo
t.me/excavo - admin
t.me/excavonews
t.me/excavochannel
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.