Advanced system #2 (Fibonacci Trading)

Easiest way to put it: you see on his picture there are some lines drawn. You can call that a "wave". If you have MetaTrader platform click middle button or scroll and draw a line, it will calculate the size of your line in pips.

Can you please tell me what is the purpose of the "must" channel?

Hi, regarding the selection of points to be a wave - how do you determine the top and bottom of a wave - I have looked at a lot of the examples, and some are easy to pick (ie fairly straight line with a clear change in direction), but sometimes there are a lot of smaller up and down movements within what has been defined as a wave. Are there rules for what the top or bottom of a wave is (eg if next 4 candles are lower then you were at the top of a wave?).

price must go into this "must channel" to validate the retracement.

I don't have metatrader platform - trying to do it manually. I can see some lines drawn, but trying to work out what the extremes are of a currency movement. Sometimes when it is moving downwards there are slight sideways movements or up swings, then it keeps moving down. Sometimes these are included as part of the same wave and sometimes not. I am trying to understand when it should be regarded as an up wave, and when it is regarded as still part of the down wave. If I could post some pictures it would make it clearer what I am asking. But for example, if there is general downwards mevement, witha small upwards swing in it, would that upwards swing be ignored if it was only 10 pips, or is that counted as an upwards movement, or would the change have to be 20 pips or 5 pips - at what point does it become an upwards movement rather than just a speedbump on the way down? (same question for the opposite direction)

Just to further my question regarding upswings and how you tell where the extremes of the currency movement is - If you look at the graph in Edwards' first example, there are dotted lines marking waves. The first one labelled Old Fibonacci has quite a sideways movement (ie the candles don't go straight down in a line. The arrow marking the entry point is on an up wave, but immediatley after the entry point the candles dip downwards before continuing up - how big does this dip have to be before it is no longer part of that up wave? There are 4 up waves on Edwards' image after the marked wave that signals an entry. Why are these split up into 4 separates waves, and not one big wave? I can't find anything to explain how to determine where the wave starts and ends (as I am doing this manually initially the answer use the software isn't helpful)
Thanks,
Linda