Why does the market always rise for a while and then fall for a while?
Actually, it's not random; it's rhythmic
The core structure has only one: 5 – 3
5-wave impulse: moves with the trend
3-wave correction (ABC): counter-trend pullback
The market does not rise in a straight line
But moves in "emotional push × emotional correction"
How to view the impulse wave?
Wave 1: Smart money starts to enter
Wave 2: Pullback washes out traders (but does not break structure)
Wave 3: The strongest, longest, and most volume
Wave 4: Consolidation and correction, don't rush to chase
Wave 5: Emotional climax, also the highest risk position
The truly profitable trades usually occur in Wave 3,
The most dangerous often come from chasing high in Wave 5
What is the correction wave (ABC) doing?
Wave A: The first drop at the end of the trend
Wave B: Gives you the illusion that "it seems to be rising again"
Wave C: Real emotional release and panic
This segment is not for you to chase
It is for you to exit, rest, and replan
Fibonacci is not for guessing, but for alignment
Waves 2 and 4 often retrace 38.2% / 61.8%
Wave 3 often extends to 161.8%
Wave 4 has shallow pullbacks and consolidates
Wave 5 is prone to divergence
Retracement + resistance / support = trading area
A key reminder for traders
Do not count waves rigidly
Do not try to profit from every wave
First see "is it currently an impulse or a correction"
Then decide "should I enter, or should I wait"
Understanding waves
Is not for predicting the future
But to know whether you should take action now