TWEET: EWT EXPLAINED
Added 2024-10-01 06:21:29 +0000 UTCThis is the standard move of impulse and corrective waves
Wave 3 and Wave 5 can extend depending on the momentum behind buying (eg. Black Swan events like an aggressive stimulus package from China)
Likewise, Wave 2 may not always go to the 0.618 Fib if there are bullish catalysts present, the 0.5 Fib should be observed in this case
But generally speaking, buying when support is found for Wave C, Wave 2 and Wave 4 will reduce your risk greatly.
Trimming profit at Wave 3 and Wave 5 will allow you to add again when the pull back completes.
This is the theory we use on 100’s of charts, we use the 50 and 200 Day MA to further confirm support levels on pull backs.
We have nearly 10,000 charts uploaded in our group now, this theory has been proven.
