Expansion: Wavefront is characterized by the periodicity and regularity of price fluctuation, which can be used to judge the trend and inflection point of the market.
Wavefront usually presents continuous peaks and valleys, forming a curve, which is often called "step wave line". This model is made up of a series of fluctuating markets. In technical analysis, wavefront is mainly used for short-term trading operation and trend analysis.
An important application of wavefront is to assist in judging market trends and price trends. When the price forms multiple peaks and valleys in a cycle, it often represents an obvious price trend, which can be used to predict the direction of the price trend. At the same time, when the price changes from the peak or trough of one cycle to the peak or trough of another cycle, it often represents an important turning point and can be used to identify the reversal signal of the market.
In addition, wavefront can also be used to determine the timing of entry and exit and stop loss. When the price is within the normal wave front range, we can adopt the medium and long-term position strategy, and the appropriate callback can be regarded as a buying opportunity; When the price breaks through a peak extreme value, it often represents the extreme situation of price change, which requires timely stop loss or reverse operation.