1. Determine the peak position of the third wave.
In the fifth wave series, the sum of average MFI and 5/34/5MACD will appear at the top of the third wave. If we plot the 5/34 oscillation index as a histogram, it is easy to determine where the peak is. This place. Because all oscillation indicators are lagging indicators, the peak of the third wave (highest price or lowest price) will be between the first wave and The 5th Wave, and also before the peak position of oscillation indicators. After the peak position appears, we find that the histogram of the oscillation index immediately drops to the lower end of the signal line. The information line is a five-step moving level of the 5/34 oscillation index. Menstrual loss. If you hold bulls, you can choose to pass in the third wave. Continue in the process of persistence; Or take profits first, and then enter the market for The 5th Wave trading after the oscillation index shows that the minimum conditions for the end of the third wave are met.
2. Determine the end point of the fourth wave.
At the end of the third wave, the oscillator will pull back with the return of the third wave. The bar chart will decompose the signal line, indicating that now is not the right time to establish a new bull. Here, we want to put forward a very important consideration. Although 5/34/5 macD is an accurate finger to judge Eliot's waves, you must first understand how it works. It must be an Elliot wave, measuring some orders. So there is a problem: it is balanced. What's the Eliot wave you measured? According to our research, for the most accurate measurement, we should consider the branch from 100 wave series bar graph to 140. If the bar chart of the wave sequence is less than 100, then MACD is a higher order Eliot wave. If the bar chart of the wave sequence is greater than 140, the MACD is a low-order Eliot wave.
3. Judging the end of the trend, the top of the fifth wave.
After the fourth wave enters the fifth wave, we can begin to estimate the destination of the fifth wave series. First, measure the starting point of the first wave to the end point of the third wave. Multiply by 100% and 62% respectively, and define a "target price distance" according to the product of the two. Secondly, from the end of the fourth wave, the fifth wave usually falls within this "target price distance". Secondly, the above estimation process is applied to the five-wave sequence in The 5th Wave. Calculate the target area of the fifth wavelet in The 5th Wave. It doesn't matter. We narrowed down the target area of the estimated price. Please note that if there is a deviation between the third peak position and the fifth peak position, the price and the vibration fluctuation index will appear. This indicates the end of the 5-wave sequence.
What is the most accurate setting of macd: MACD, commonly known as divergent moving average, is developed from double exponential moving average. Subtract the fast exponential moving average (EMA 12) from the slow exponential moving average (EMA26) to get the fast exponential moving average (DIF), and multiply it by 2×(DIF-DIF 9 daily weighted moving average DEA) to get the MACD histogram.