If the market behaves like wave principles, so i think it's predictable - page 2

[Mrluck07]

Young Ho Seo:

You are only getting incomplete answer.

Here are the five regularties the market can costitues of (=more complete answer).

Regardless of what other people say, these regularities are in the market and 95% of trading strategies are based on one of these regularities (consider 6th regularity = correlation).

You were referring to regularity 2, 3 and 4 in your question but not 5.

As you can tell, fifth regularty (or regularity 5) is wave too but it does not need to base its cycle on time but on the magnitude of itself only.

This is the typical behavious when too many variables are influencing the end results of the thing.

The same analogy goes that human have birth - growth -mature - dead or you can find many other things in your life.

Fifth regularity is the superclass of all the other four regularities even including trend.

The scientific name for the fifth regularity is equilibrium fractal wave for your information.

Thanks for the info, i see you wrote a book about it

[Young Ho Seo]

Mrluck07:

Thanks for the info, i see you wrote a book about it

Yes, I wanted to share the my own enlightenment with other traders because many traders confuse the wave with periodic cycle (2, 3, 4th) from the wave with non periodic cycle (5th).

The consequence of not differentiating these two wave types is that you will apply wrong trading strategy to wrong market.

But you brought good topics for traders.

You will get more enlightening when you realize that the number of cycle period goes zero to infinite from left to right (see the price pattern of equilibrium fractal wave I posted earlier).

This explains a lot of trading strategy and why they success and why they fail too.