What is hidden behind price fluctuations? Interpretation of Wes Wave Trading Strategy

In the financial market, the “wave drama” of alternating ups and downs is staged every day. The K-line and trading volume in the eyes of traders are not just numbers, but a true portrayal of the psychology and strength of market participants. If you want to make decisions more confidently in the market, you need to learn to understand these wave signals. Weis Waves
Wave) strategy is a tool that can help traders understand market trends and momentum.

Original Story

Wess waves originate from the Wyckoff method (Wyckoff
Method). At the beginning of the last century, Richard D. Wikov proposed a systematic price behavior and trading volume analysis method to understand the power behind market supply and demand. Wikov believes that simply looking at the price trend is easy to lose direction, and trading volume is the “heartbeat” of market forces.

David Wes innovated based on Wikov’s theory and introduced the concept of “wave”. He believes that market prices do not change in a fixed time period, but are promoted in the form of waves, and each wave is the result of participants’ power game. By accumulating wave trading volume, traders can observe the true intentions of buyers and sellers more clearly. With the development of charting software, this analysis method has gradually evolved from manual drawing to visualization tools to help traders apply in different time frames and asset classes.

The core idea of ​​wave analysis

The essence of Wes Wave is to accumulate trading volume into price waves, thereby filtering market noise and gaining insight into trend power. Its core components include: Price Waves

Each section of obvious price rise or fall forms a wave. For example, a rising wave from a low to a high, or a falling wave from a high to a low.

Volume Waves

Accumulate the trading volume in the price wave and observe the power behind the price movement. If the trading volume increases in the upward trend, it means that the buying power is strong; if the trading volume increases in the downward trend, it means that the seller is dominant.

Wave Chart

Wave Chart displays the accumulated trading volume corresponding to the price wave in a bar chart, so that the trend, reversal and support resistance are clear at a glance.

Compared with traditional trading volume analysis, WessWaves focus on band accumulation rather than single K-lines, which allows traders to grasp the trend as a whole and reduce short-term noise interference.

Wave signals and applications

In intraday trading, we often encounter the following wave patterns:

The propulsion force is shortened

The wave length and trading volume are reduced, indicating that the trend may weaken.

Consolidation wave

Price fluctuates within the range, and the next breakthrough may bring opportunities.

Spring and Upward (Spring/Upthrust)

False breakthrough triggers stop loss, and the institution accumulates chips in this way, and then drives a price reversal.

Practical significance: Be proficient in spring trading methods and capture high-probability trading opportunities on short-term charts.

Big efforts and small returns

Trading volume is large, but price changes are limited and trend momentum is insufficient.

Trading Inspiration: Identify “waste power” and avoid blindly chasing the rise and selling the fall.

Direction signal

Price hit a new high/low, while the waves are not synchronized, indicating that the trend may reverse.

Operational skills: combine support resistance levels and trend lines to capture reversal opportunities.

Trading Strategy Example

Strategy 1: Trend Follow

Long Entry: The wavy column turns from red to green, and the price rebounds at the same time.

Enter for short selling: The wavy column turns from green to red, while the price touches resistance.

Stop loss: previous wave of support/resistance; stop profit: previous high and low points or risk preference settings.

Strategy 2: Combining the reversal candlestick

Morning star pattern + wavy column green → bulls continue opportunities

Twilight star + wavy column red → bears continue opportunities

Combined with support resistance and stop loss and stop profit, enhance the stability of the strategy

Why choose Wes Wave?

Trend judgment is clearer: filter short-term noise and grasp the main bands.

Intuitive reversal signal: the accumulation of trading volume reveals the market momentum recession.

Multiple charts are suitable for: Renko, Tick, and Delta charts can be used, with high flexibility.

Risk controllable: Through demo account practice, the strategy can be verified without financial pressure.

Wess wave is not only a technical indicator, but also a market thinking. Learn to understand market power from the waves, you will find the logic behind the rise and fall, and you will be more self-reliantMake transaction decisions confidently.

In EagleTrader, traders can constantly try and verify strategies through simulated environments, and gradually accumulate experience and improve judgments in the ups and downs of waves. We hope that every trader can grow through such a combination of learning and practical practice, from understanding the market to controlling the market, and finally finding his own trading method.