Post by zzamand56 on Mar 12, 2024 1:32:37 GMT -8
Furthermore, the opposite movement is usually accompanied by low volume, indicating that the selling pressure is exhausting. From the market's perspective, this behavior is explained by the fact that some weak players perceive the beginning of the wave as a continuation of the bear market. Large investors who already know about the reversal of the main trend towards the bullish movement, initially do not create any obstacles, trying to redistribute assets in their favor at lower prices. LiteFinance: Robert Prechter: Wave Psychology. Guidelines for the identification and alternation of wave structure | Litefinance The chart shows the second wave retracing almost half of the first wave that preceded it. Note that most of the candles in the formation are accompanied by low volume.
And only at the end, the volume grows along with the sharp drop in price. were convinced of the bearish sentiment at the time of the advance. On the candle following the big Belize Mobile Number List advance, assets redistribute in favor of the big players, which is followed by a sharp price increase in the third wave, leaving the bears stranded. You can read more about these processes in my articles dedicated to the VSA system. Third waves The third waves are especially interesting, as they are mostly of long duration, creating a trend that is now unmistakable. At the time of the formation of the third waves, more and more favorable markers usually emerge, confirming the possibility of obtaining a large profit without much risk.
That is why third waves are usually accompanied by large volumes and have strong price movements, which often leads to the lengthening of their structure. This principle generates other guidelines. For example, the third subwave of a third wave is characterized by instability in the intensity of the movement. There are sharp jumps, breaks in resistance levels, gaps, increases in volume, etc. In fact, almost all assets on the market participate in the development of third waves. Hence the intense and dynamic movement. LiteFinance: Robert Prechter: Wave Psychology. Guidelines for the identification and alternation of wave structure | Litefinance The BTCUSD H1 chart shows the third wave (marked with green areas) and the corresponding volume. As you can see, the intense upward movement is accompanied by large volumes throughout the entire third wave.