If we take a 5-period moving average of the oscillator (5/34/5), we can transform the oscillator into a "Moving Average Convergence Divergence (MACD) indicator." The final moving average becomes the "signal line" or an indicator representing the market's rhythm, allowing us to assess the market trend with greater confidence. This is a reliable indicator that can precisely predict where the market will begin to lose momentum. After this signal occurs, the price will then show a noticeable directional change (in momentum). The 5/34/5 MACD in the "Consistent Profit Method" immediately tells us what action to take.  

The 5/34/5 MACD in the "Consistent Profit Method" has four main functions:  

1) Identifying the peak of Wave 3;  

2) Determining the end of Wave 4, or confirming that the minimum conditions for Wave 4’s completion have been met;  

3) Judging the end of the trend and the top of Wave 5;  

4) Showing the immediate directional movement of current momentum or providing long/short trading signals.  

**Identifying the Peak of Wave 3:**  

In a five-wave sequence, both the MFI average and the peak of the 5/34/5 MACD will appear at the top of Wave 3. If we plot the 5/34 oscillator as a histogram, it is easy to identify where the peak occurs. Since all oscillators are lagging indicators, the peak of Wave 3 (the highest or lowest price) will be located between Wave 1 and Wave 5 and will occur before the oscillator's peak.  

After the peak appears, we observe that the oscillator’s histogram immediately drops below the signal line. The signal line is the 5-period moving average of the 5/34 oscillator. Once this occurs, long positions must be monitored closely: momentum has been lost. If holding a long position, you may choose to keep it during Wave 4 or take profits early and wait until the oscillator shows that the minimum conditions for Wave 4’s completion have been met before entering a trade for Wave 5.