The market adjustment in the past two weeks has attracted attention within the industry. From the analysis of the 4-hour Candlestick Chart, a blue line 5-wave down structure appears on the left side. This structure, as an initial down wave, usually has subsequent continuations in the same direction, leading to further price dips.

However, observations over the past few years have shown that it is not uncommon for a reverse breakout to occur after a 5-wave fall. In about five cases I recorded, one was due to the impact of CPI data, which ultimately released market pressure and led to a significant price increase. The other four appeared to be a 5-wave structure on the surface, but in reality, they were 3-wave patterns.

This complex market structure reminds us that while technical analysis is important, one should not overly rely on a single indicator. In the current market environment, investors need to consider technical factors, fundamentals, and macroeconomic factors comprehensively to assess market trends more thoroughly.

At the same time, this market volatility also presents potential opportunities for traders who can accurately grasp the market conditions. However, it is important to note that in such a high uncertainty market, risk management becomes particularly important. Setting reasonable stop-loss levels and moderately controlling positions may be a wise move to cope with the current market.

Overall, the current market is at a critical turning point. Whether choosing to observe or participate in trading, it is essential to remain highly vigilant and be prepared to respond to potential severe fluctuations.