Wave logic

Core idea

A wave doesn't run on its own: the higher timeframe decides the trend, the lower timeframe is the catalyst that pushes the higher timeframe along that trend. Reading a wave = reading RSI across multiple timeframes: how much is left in the tank, are the timeframes in phase or out of phase, can the smaller timeframe create enough momentum to keep pulling. RSI doesn't decide price — it's just the lens for reading the buying/selling pressure relationship.

Details

4 theoretical pillars

1. RSI is a wave's fuel tank → see the wave's fuel tank.
2. The nature & progression of timeframes.
3. RSI's agreement across timeframes.
4. The nature of the wave — whether the wave has real force or not.

Properly analyzing a wave means synthesizing all 4, not using any single one in isolation.

Part 2 — The nature & progression of timeframes

• Each timeframe represents its own group of investors: different amounts of capital, different habits, different targets, different risk points, different amounts of time to finish a wave.
• Time to finish a wave (the teacher's estimates):
  • 15m: ~25–30 candles ≈ 7 hours ≈ half a day
  • H4: ~3–5 days (entry to take-profit takes almost a week)
  • 1D: ~2 weeks
  • 1 month: a few years
• Waves run in sequence from the smaller timeframe up to the bigger timeframe. Once the smaller timeframe finishes its own wave, it "hands the decision over" to the bigger timeframe — this is exactly wave progression across timeframes.
• Only adjacent timeframes can pull each other. The adjacent ratio is roughly 3–6 times: 5m → 15m → H1 → H4 → 12h/1D → 3–5D → 1W → 1M.
  • m15 is only strong enough to pull H1; only H1 is strong enough to pull H4; only H4 can pull 1D. Never use m15 to conclude anything about the 1D trend.
• Timeframes that are too close together count as one timeframe; comparing agreement/disagreement between them is meaningless: 3m–5m, H1–H2, 12h–1D, 1D–2D, 3D–4D, 5D–6D.

Part 3 — RSI's agreement across timeframes

• Strong uptrend: every timeframe from 1D and above has to agree it's rising — RSI sitting above the 2 moving averages with the 2 MAs spreading apart — and at the same time it has to create rising momentum to keep pulling the market forward. If 1D and above can't create rising momentum, don't even think about an uptrend.
• Downtrend: the reverse, but much harder to spot. In an uptrend, buying pressure shows itself clearly (the whales have to let the crowd see it so they buy along); a downtrend unfolds gradually, sinking little by little from the sine wave's upper edge, without creating falling momentum right away — by the time the crowd admits "it's a downtrend now," price has already collapsed deep.
• Within the main wave: the timeframes are in phase with each other → the wave runs fast, strong.
• Within a correction wave: the smaller timeframe is out of phase with the bigger one (H1 against H4, H4 against 1D), but the bigger trend is still held. When the smaller timeframe crosses back into phase, the main wave keeps running.
• Range: the timeframes are chaotically out of phase with each other, RSI hovering around 40–60, no timeframe creates a clear trend.
• The trading principle this leads to: when trading within a trend, look for the point of agreement; when the timeframes are out of phase with each other, stand aside and wait.
• A two-part formula sums up all of Part 3: the adjacent bigger timeframe ALLOWS it + the adjacent smaller timeframe SUPPORTS it.
  • "Allows" = the bigger timeframe is still in that trend / not yet clearly out of phase. For example, if 1D is rising, it allows H4 to complete its rising momentum; if 1W is starting to expand downward, it's very hard for 3D to complete rising momentum no matter how hard it tries.
  • See also multi-timeframe.

Part 4 — The nature of the wave

The question: does this wave that's currently running have real buying/selling pressure, or not?

• Answer it by looking down at the immediately smaller timeframe: can it create rising (or falling) momentum to keep pulling?
  • H4 rising → check whether H1 has rising momentum. H1 rising → check m15. 1W rising → check 1D/2D/3D.
  • If H4 crosses up but the smaller timeframe can't create momentum → the rising force isn't real, the wave is weak.
• Take-profit point: the immediately smaller timeframe finishes its momentum without creating new momentum, while the timeframe you're trading starts to correct.
• Conversely, if the bigger timeframe's RSI goes very far while price doesn't break out to match it → buying/selling pressure hasn't actually come back at all → be careful (see "price channel" below).

Wave with / wave against

• In phase = a leg of the main wave. Price runs smoothly and strongly.
• Out of phase = a correction leg. Price can still inch in the bigger timeframe's direction, but jerkily, roughly, because buying pressure on the smaller timeframe is only resting while the bigger timeframe keeps pulling — with no selling pressure involved, so the smaller timeframe's RSI can't drop below 50.
• A bounce wave ≠ a rising wave. An H2 rising pattern that shows up while 1D is falling → that's only a bounce wave inside the 1D falling wave → short target, close early. Naming the wave wrong means expecting the wrong thing and losing profit.

An upward price channel ≠ an uptrend

• A genuine uptrend: later highs are clearly higher, and the correction wave doesn't drop past fib 0.5 of the previous wave. The illustration: "1 seller, 9 buyers."
• An upward price channel: correcting to 0.6–0.7 while the following wave still passes the previous high. The illustration: "5 sellers, 6 buyers" — buying pressure is still bigger, but weak, not enough to create a trend.
• This is the answer to the classic question, "why does the correction go back to 0.6–0.7 and price still passes the previous high."

Determining which timeframe a high/low belongs to

• A high (or low) on timeframe X is where timeframe X's RSI has a corresponding EXPANDING correction process: RSI sitting above/below the 2 MAs, crossing them, and then the 2 MAs spreading apart in the new direction.
• If RSI only crosses down and immediately crosses back up, with no expanding stretch, that's not yet a high/low for that timeframe — it's a high/low for a smaller timeframe.
• Consequence: a low might "not yet be a 3D low" at this moment but become a 3D low later on once 3D's RSI genuinely expands out.

When momentum loses effect

• Rising momentum loses effect when RSI drops below 40 (selling pressure starts coming back in) and price breaks through that timeframe's support zone.
• Buying pressure comes back when price breaks resistance and RSI climbs above 60.
• These thresholds are relative: if RSI dips slightly below 40 but price still holds support, you still have to keep watching — reading market psychology isn't a 1+1=2 formula.

A sign a timeframe is about to go sideways

When the previous RSI high doesn't go above 70, the previous low doesn't go deeper than 30, and then RSI starts creeping into the 50 zone → that forecasts the timeframe is about to enter a range.

Putting it into practice

The process for reading a wave on timeframe X:

1. X's fuel tank: has RSI just crossed and is expanding (still has gas), or has it gone far/is contracting against the 2 MAs (nearly out)?
2. Does the adjacent bigger timeframe allow it yet: in phase or out of phase? If out of phase, X's wave is just a bounce wave.
3. Does the adjacent smaller timeframe support it yet: has it created rising/falling momentum yet? Has it broken support/resistance and retested yet?
4. Does price confirm RSI: RSI going far while price idles → false force.
5. Take profit when the adjacent smaller timeframe finishes its momentum without creating new momentum.

An example the teacher works through (H4 rising, 2022): H4 has just crossed up → still has gas; 1D is still in a rising trend → allows it; H1 creates rising momentum → supports it; going down further, m15's rising momentum is only enough to pull H1, not enough to pull H4 → when H1 finishes its momentum without creating new momentum and H4 starts to correct → take profit around the high zone.

What the teacher stresses / common traps

• RSI doesn't decide price. Anyone who argues "price movement doesn't depend on RSI" is misunderstanding the point: RSI is only the tool for reading the nature of buying/selling pressure.
• Don't compare agreement between timeframes that are too close to each other — worthless.
• "Starting to rise" is emotional, hopeful language. You're only allowed to call it rising or falling based on what the market is actually showing — "what you see, not what you think."
• When the market isn't showing anything, don't fight windmills, just let it move.
• The learning phase: review RSI on stretches that CLEARLY have a trend first, don't review range zones — you'll see the timeframes chaotically contradicting each other and think the theory is wrong.
• A downtrend is much harder to recognize than an uptrend.
• Don't cling to too many indicators/schools of thought at once early on; go deep on one system.

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