Elliott Wave Theory is regarded as the most systematic and complex framework in technical analysis, attempting to explain the structural movements behind prices and the rhythm of collective sentiment.

A typical upward cycle consists of five impulse waves. The first, third, and fifth waves follow the main trend and are considered to represent the market's offensive strength; the second and fourth waves are corrective against the trend, used to digest floating capital and cleanse weak hands, allowing the market to regain momentum before the next acceleration.

In most trends, the third wave is often the most explosive segment. The reason is simple: market sentiment shifts here from doubt to confirmation, with a large influx of following and FOMO capital driving prices upward. Therefore, those who can wait to enter at the end of the second wave usually reap the most substantial portion of the entire trend.

After the five-wave structure is completed, the market typically enters an ABC correction. Wave A leads one to mistakenly believe it's just a minor pullback; Wave B creates a temporary illusion of a rebound, which is a typical bull trap; Wave C is the confirmation phase of trend reversal, where many who chased high in the fifth wave will see their profits completely evaporate or even turn into losses.

To correctly identify wave patterns, a few basic rules must be followed. The second wave cannot drop below the starting point of the first wave; otherwise, the structure fails; the third wave cannot be the shortest wave, as it represents the core momentum of the trend; the fourth wave should not return to the price area of the first wave, as this would violate the principle of non-overlapping waves.

It is important to note that wave counting is highly subjective. Different time frames and trading experiences can lead to completely different interpretations. Do not treat a single count as the only answer, but should simultaneously prepare backup plans and always maintain strict position and risk management. #特朗普家族币