B A BA Ichimoku - 3 - Waves, Waves, Fluc

tuations

The undulating theory

It is one of the pillars of Ichimoku.

Wave, Wave, Fluctuation

Basically, a simple candle can represent as well

a basic Type I wave,

than a V-type wave,
or a Type N fluctuation.
A wave I is the simplest element.

A wave is always Type V, and corresponds to

a wave I pulse followed

A wave I correction.
The interpretation may be different in English since it is essentially called "wave".

Below are some examples.

Fluctuation
A fluctuation is therefore a succession of 3 consecutive Type I waves.
The third wave of fluctuation is always in the direction of the first wave.
When a trend reverses, it is said that one changes fluctuation.

PSY-type intermediate fluctuations

There are three types:

P (so-called contraction),
S (so-called preparation)
Y (so-called expansion)
Be careful not to confuse the N and the S.

Dow and Elliott

Charles Dow

Dow's theory says that in an uptrend, each peak is higher than the pre
vious peak, and each trough is higher than the previous low.

Similarly in a downtrend, each peak is lower than the previous peak, and each trough is lower tha
n the previous low.
This is a "universal" law, but nothing revolutionary, rather an observation and a finding.
To climb a flight of stairs, each next step is higher than the previous one. And when you go dow
n, every next step is lower than the last one.
To change direction, to move from one state to another, we go through a transition stage. We t
urn, we cross an alock ... it is a more or less fast but obligatory step.

Ralph Nelson Elliott

The movements of the financial markets are structured by phases of

five wave in trend and three of consolidation ...
B A BA Ichimoku - 3 - Ondes, Vagues, Fluctuations - Ichimoku Academy 2.0

When it comes to Ichimoku, Westerners tend (humor) to confuse wave theory with Elliott's the
ory. It's a not-so-fair shortcut.

Goishi Hosoda

The big difference between Elliott and Hosoda is the integration o

f the notion of time

While Hosoda is also inspired by human nature and behaviour, his undulating theory is more gene
ral, simpler and more accurate than Elliott's.

I personally would like to say that Elliott's theory is only one particular case, among others in H
osoda's theory.

This is all the more so since Hosoda adds the theory of Prices and Numbers, and the precision p
rovided by the whole is of an efficiency without comparison possible.

Practice spotting waves, waves and fluctuations on a graph!

There are, of course, very specific rules on time and price that allow the discerning eye to spot
behaviour in the market well before the time thanks to Ichimoku, but Ichimoku is a whole.

It's like learning to play the guitar!

First a note, then 2, then a chord, then a string of chords, then a riff, then a melody, then a co
mplete music.
To get to play the guitar, it requires time and effort, constant, regular!

In the next issue, we will make a stopover in the price territory.

Christmas Guth and Sébastien Zanetti