D-Wave
D-Wave displays waves according to the following logic:
For Up-Waves,
High of 1 is less than the low of 4, and
High of 1 is less than the high of 3, and
High of 3 is less than the high of 5.
For Down-Waves,
Low of 1 is greater than the high of 4, and
Low of 1 is greater than the low of 3, and
Low of 3 is greater than the low of 5.
Level / Price
Wave Start-21 Low
Wave 1-8 High
Wave 2-5 Low
Wave 3-13 High
Wave 4-8 Low
Wave 5-21 High
Wave A-13 Low
Wave B-8 High
Wave C-21 Low
Reverse logic for sells.
For further information on D-Wave, please refer to Thomas R. DeMark, The New Science of Technical Analysis, New York: John Wiley & Sons, 1994, Chapter 4, Wave Analysis.
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