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Let me talk about a 4-hour trade I made on April 10th. Previously, there was a wave of 3 falls, and it paused around 74000 to rebound, forming a W pattern. Then it broke through the W, reaching the Fibonacci 0.682 of the decline starting from 88500, which is also the area of previous sideways movement, creating resistance. Therefore, I opened a short order of 0.5 times at the red circle. Subsequently, it fell to around 79800 (0.382), and further down to 77700 is the stop loss medium term. Those who are attentive might notice that this position is exactly where the annual line (ma360) support is. At this time, because I was making a short-term short order on the 4-hour chart, I encountered this large level of support and pattern support, so I executed the close position operation at the green circle.
a. In the case of a fall with three waves, there is actually still an expected adjustment of the final five waves that has not completed, and the market has expectations of a future decline.
b. In the case of a fall with five waves, it has basically completed, especially the equal amplitude of 1 and 5 is more verifiable. The market has expectations of future adjustments, which weakens the decline.
c. The W pattern has a certain degree of consumption of chips, and after the breakout, the probability of a pullback is higher.
d. The V pattern has a stronger trend, with no excessive consumption of chips, which is beneficial for the breakout but not for the pullback.
These views are my personal summary for reference only; trading is about continuous summarization and optimization, with both right and wrong, each taking what they need.