Analysis of Three Continuation Forms of N-word Structure 1

      The importance of reversal pattern in trading is to grasp the reversal of the trend at the first time, cooperate with the same trading strategy, grasp the best entry point, use the minimum risk to maximize the grasp of a period of trend, and expand the profit-loss ratio. If you don't grasp the best entry point, then don't regret it, don't complain, the continuation form provides us with a more reliable opportunity.

         Whether it is trading with the N-shaped structure or in other trading systems, as an observation point, the continuation pattern can provide us with a high winning chance to enter the market. The most important thing is that it is not complicated. I will do it as always. To be concise and clear at a glance.

Continuation Form 1

       This is the most standard N word, a basic continuation form. In fact, it is the abc in the wave. It is easy to explain the internal reason of this form with Dow Theory.

Continuation Form 2

           It is a failed M gimmick. The important feature is that the first stroke (a) does not break point D, and the third stroke (c) does not break the first stroke.

Continuation Form 3

          The second stroke (b) shrinks without breaking the previous height, and the third stroke also corresponds to the shrinkage without breaking the first stroke. The two strokes converge to form a continuation pattern. In fact, it is just a continuation triangle.

          In the previous discussion, many friends said that these shapes of mine are actually the classic shapes in textbooks, such as M head W bottom, head shoulders top head shoulder bottom, I said yes, you can understand it this way, like the continuation shape 3, You can also say that it is a deformed M head, how different is it from the continuation form 2? How much is the difference between the triangle and the M head? Where is its subtlety? Right, so does it make sense? Yes, the truth is in the Dow Theory.

           All the forms have gone around, and it seems to have returned to the starting point, but as long as we look carefully, the starting point is actually different. This time we have the tool of Dow Theory and the perspective of the N-word structure, and we have already stood at a more advanced level. From a high starting point, and understand a truth: the avenue is as simple as it is!