Understanding Trends and Waves in Trading

Introduction
In trading education, recognising price movements is crucial. Prices move in trends, and these trends move in waves. Understanding these waves is essential for successful trading.

The Two Types of Waves

Impulsive/Primary Trend
Comprises a minimum of five waves.
Dictates the overall direction of price movement.

Corrective/Secondary Trend
Comprises a maximum of three waves.
Provides insights into the ongoing trend.
This phase is the most critical for traders to master.

Conclusion
To trade successfully in a trending market, it’s vital to learn how to accurately count waves. Mastering this skill can significantly enhance your trading decisions. Best wishes for your trading success!