Closing theory: completing the unfinished wave

Closing is our school’s own tool for solving the hardest problem an analyst faces: long complex corrections whose end nobody can tell. Its definition in a few words: completing an unfinished part. When the market leaves behind a wave that never received its due correction, it comes back to close it before moving on.

The “abnormal” wave

A normal wave is a motive wave that carries small corrections inside it. An abnormal wave is a strong, fast wave with no internal correction: price rushes in an almost straight line, as if nobody dared to oppose it. Such a wave looks like strength, but in our method it is a debt the market owes: it must be closed, that is, a later correction must return inside its range to complete the missing part — not necessarily of equal length.