What is the wave theory and what are the advantages and disadvantages?

Wave theory is a trend analysis tool invented by the master of technical analysis Eliot, which is completely based on the law of observation. It is widely used in the international investment field, but it is also a set of tools that are difficult to understand and master.

Its core content can be broadly summarized in four aspects:

First, the stock price index will rise and fall alternately.

Second, there are two most basic forms of wave theory, which are pushing waves and corrective waves. The driving wave can be divided into 5 small waves, namely the 1st wave, the 2nd wave, the 3rd wave, the 4th wave, and the 5th wave. Correction waves can also be divided into three small waves, commonly known as wave A, wave B, wave C.

Thirdly, after the completion of the push wave and the correction wave, a cycle is completed, and the trend will move on to the next cycle.

Fourthly, the pattern of the wave does not change depending on the length of time, because no matter what, the market will develop according to the basic pattern, and although the pattern of the wave can change, the basic pattern will not change.

Disadvantages of Wave Theory:

1) Wave theorists do not have a uniform view of the phenomenon. Every wave theorist, including Eliot himself, is often plagued by the question of whether one wave has completed and another has begun. Sometimes A sees the first wave, and B sees the second wave.

The difference is a millimeter, and the loss is a thousand miles. The consequences of misreading can be severe. Ordinary people often get caught up in the dilemma of thousands of people and thousands of people.

2) There is no clear definition of what constitutes a complete wave. **The number of ups and downs in the market does not follow a mechanical pattern, and the number of waves is completely arbitrary and subjective.

3) In the wave theory, there are waves within waves, which can be extended infinitely or infinitely**. As long as the uptrend is not broken, it will remain an upswing, and it is impossible to predict the duration of the wave top and bottom.

Advantages of Wave Theory:

Even though the iron law of waves is often broken, and each wave counter is inspired by himself, wave theory is not useless and has its own merits. At the very least, investors who love wave theory understand that push waves and correction waves alternate, the market always runs in the way of n-word waves, and the trend is prone to continuation.

If once a large upward push wave is formed, after a short adjustment of the stock price, there will be a three-wave N-shaped upward attack in the future market. Provide investors with a more accurate profit buying point. On the contrary, after the formation of a larger **adjustment wave, the stock price will be short-lived**, and there will be a possibility of another sharp n-shaped ** decline in the market outlook, providing investors with a more accurate selling point for escaping.

Hello, wave theory is actually a set of laws that are completely observed, which can be used to analyze the trend of **index, **, and it is also the most used analysis tool in the world, but also the most difficult to understand and master.

Eliot believes that whether it is a fluctuation or a commodity, it is the same as the waves of nature, wave after wave, repeatedly, with a considerable degree of regularity, showing the characteristics of cyclical cycles, and any fluctuations have traces.

According to Elliott, the characteristics of the wave are: the rise of the stock price index and the ** will alternate; Push waves and correction waves are the two most basic patterns of volatility. The driving wave (i.e., the wave that is consistent with the direction of the market) can be divided into five small waves, which are generally represented by the 1st, 2nd, 3rd, 4th, and 5th waves; The correction wave can also be divided into three small waves, which are usually represented by wave A, wave B, and wave C.

After the completion of the above eight waves (five up and three down), one cycle is completed and the trend will enter the next eight wave cycle. The length of time does not change the pattern of the wave, as the market will still develop according to its basic pattern. Waves can elongate or shrink, but their basic form remains the same.

In conclusion, the wave theory can be summed up in one sentence, the "eight-wave cycle".

This information does not constitute any investment advice and should not be relied upon by investors as a substitute for their independent judgment or decision making based solely on such information.

The wave theory was invented by a foreigner and may be applicable when used abroad. However, for China with Chinese characteristics, it is often difficult to fulfill. China's ** and ** are characterized by long bears and short bulls, with three days at the top and one hundred days at the bottom, and it is impossible to count the first waves.

The five rising waves will be completed in half a month, and the adjustment wave ABC will be three years, at least one year, and the adjustment will be much lower than the rising wave, so what kind of wave is it?

What can be actually fought is right, everyone has different personalities, different economic abilities, and different goals, how can they simply read books and newspapers? ? To combine their own character, waves, bands, speeds, time, space, trends, support pressure levels. If you want to make money with waves, you have to study hard.

The waves in the field are constantly changing, we can speculate on the current psychological and emotional changes of the market according to the specific wave theory, and the way the sentiment indicator changes is different from the wave theory, but if we combine the two when trading, love and death education is also helpful to our analysis. When the market is affected by the sentiment of the exchangers, the difference in the strength of the pair will be reflected, and this may also be reflected in the third wave.

Let's take a hard look at this issue. I am not very good at using waves, but I will never deny their validity, and any theory based on the laws of nature, do not easily deny it, unless we can find conclusive evidence to prove that its theoretical basis is wrong, but at present, it cannot prove that waves are useless......First of all, what is a wave, a phenomenon in which a local particle of a liquid with a free surface is disturbed, leaves its original equilibrium position, and moves periodically undulating and spreads around. After the wave is formed, you can see the surface of the liquid fluctuating one after another.

With the definition, what is the local particle on the surface - the chips that are not controlled by the business owner. In the era of gradual full circulation, the business owner will not give up control unless he does not want to. From the institution to the **, what can be controlled is only the floating chip, compared to the business owner, it is not a problem.

This is easy to understand in ** stocks, but what about small-cap stocks? The total share capital is 5000w, the outstanding shares are 4900w, **20+, it seems that there are 1 billion yuan that can be bought out. Yes, it works in theory, but it can't be done in practice, and if a large-scale or even hostile takeover is found in the secondary market, the business owner will protect the control.

I can set a sell order at 200 yuan, and you can buy it if you have the ability. Relying on red interest alone, I may not be able to increase the unit price from 20 to 200 in my life, if you really buy it, I will make a lot of money, and it doesn't matter if the control is ceded. Can the stock price actually go from 20 to 200 in a limited time?

Absolutely, but the share of the total share of the transaction is very small, and the higher the stock price rises, the smaller the share capital available for trading in the middle of the ......So it's a wonderful thing for business owners to get the benefits and not lose control. Since most of the transactions are floating chips, it is appropriate to use waves to reflect the movement rules of floating chips, and the shape, meaning and spirit are very similar. The long-term trend of the stock price reflects the direction of its value.

The business owner runs the business and contributes the bonus interest, and the market participants contribute a premium (which can be positive or negative) through trading. In trading, you can either win the premium part (speculation) or only receive bonus interest (investment), do you want to be on the side of the business owner or on the side of the trader? Either way, there are risks.

Either way, you have to control the risk. There are many ways to control risk, and waves are one of them. Either way, the first thing to consider is its ability to warn of risk.

The image of the wave embodies the movement rules of the floating chip, and the core is to reflect the process and mode of energy transmission. "After the local particle is disturbed, it leaves its original equilibrium position and does periodic undulating motion." The factor that disturbs the quality point (**) here is the behavior of the trader, and the "cyclical" directly says that the wave will rise and fall, and the wave will rise if it falls, because it is constrained by the "equilibrium position".

The "equilibrium position" here is the intrinsic value of the target. The expression of the wave on the ** pattern is to judge the ** boundary to achieve the purpose of warning the risk.

Liu Huilun's binary trading method has a more profound answer to the theoretical wave theory

Wave theory is a theory created by Ralph Nelson Eliot, an American analyst, using the Dow Jones Industrial Average as a research tool.

The main contents are: first, the shape of the wave; second, the proportional relationship between waves; Thirdly, as the time interval between the waves. And between the three, the shape of the wave is the most important.

The shape of the wave is the basis of the Elliott Wave Theory, so the correctness of the number of waves is crucial to the successful use of the wave theory to grasp the investment opportunity.

The premise of this theory is that when the stock price moves in the order of five waves in the main trend, it fluctuates in the order of three waves when it moves against the main trend. Long waves can last for more than 100 years, and secondary waves are quite short-lived.

The ** division ratio in wave theory is calculated according to the ratio of the previous term to the last term of the value of Fibonac's number series, such as 8 to 13=. Ratio of the latter to the previous = e.g. 21 to 13 ......And so on. And the ratio of any one to the first two = and the ratio to the last two = this is the soul of wave theory.

The basic ideas of wave theory:

1.The rise of the stock price index and ** will be alternate. Push waves and correction waves are the two most basic ways of volatility.

2.The driving wave consists of 5 rising waves, i.e., the five-wave ascending pattern. In the market** in a specific five-wave pattern, where waves are upward waves, and waves 2 and 4 are reversed waves.

3.The adjustment wave consists of three waves: A, B, and C, that is, the three-wave adjustment pattern. After the five-wave rise operation is completed, there will be three waves A, B, and C to adjust the five-wave rise, of which wave A and wave C are the first waves. Wave B is the ** wave.

4.A complete cycle consists of five rising waves and three corrective waves, the so-called eight-wave cycle.

5.The first wave has two manifestations, one is a building bottom, and the other is an upward pattern; The second wave sometimes adjusts sharply and falls dramatically; The third wave is usually the most explosive, and it is the wave with the longest running time and amplitude; The fourth wave often appears in a more complex pattern, mostly in the form of a triangle correction pattern. If the second wave is a simple wave, then the fourth wave is mostly a complex wave; If the second wave is a complex wave, then the fourth wave is mostly a simple wave.

The four waves should not be lower than the top of the first wave. The fifth wave is the last wave in the ascending and varies in intensity.

The waves are adjusted to the rise of the five waves, and the strength is different; Wave B is the first wave to repair wave A, the upward trend is more unstable, and wave C is long and amplitude, and it has the most lethal impulse.

The basic sampling data of the model of the Ai Potato Jerryott is taken from the Dow Jones index of the United States, which determines the limitations of its application from the congenital level. The flaw of wave theory is that it is not easy to distinguish between large and small waves; There are various forms of rushing bright waves, and it is not easy to judge. It is mainly used for analysis and ****** of the general trend, and is not suitable for the selection of **.

Wave energy refers to the kinetic and potential energy possessed by waves on the surface of the ocean. The energy of a wave is proportional to the square of the wave height, the period of motion of the wave, and the width of the facing wave. Wave energy is the most unstable energy source in the ocean, but it has the highest taste, the most widespread distribution and high energy flow density.

According to the World Energy Council, the global available wave energy reaches 2 billion kilowatts, which is equivalent to twice the current energy generated by the world. China has vast marine resources, the theoretical storage capacity of wave energy is about 70 million kilowatts, and the coastal wave energy flow density is about 2 7 kW m. Zhejiang, Fujian, Guangdong, and the coastal areas of Taiwan are all areas rich in wave energy.

Wave energy, also known as ocean energy or wave energy, is energy extracted from the ocean or ocean waves. The violent vertical motion of waves on the surface of the sea contains a lot of kinetic energy, and the stronger the wave, the more capable it is to generate momentum. Wave energy technology can capture this kinetic energy for power generation or water pumping, and there are currently certain difficulties in using wave energy to generate electricity, so there are few such power plants in the world.

Waves are created when the wind blows through the water with enough intensity. Due to the lack of land to resist the wind, this happens most often in the ocean, where the waves are also the most intense.

The kind of waves that form depends on the geographical location.

The long, steady waves that are constantly lapping on the beach are likely to be caused by distant storms and extreme weather.

conditions formed. The strength of the storm and the intensity of its impact on the water surface can even cause waves on the shores of another hemisphere. When Japan was hit by a massive tsunami in 2011, the tsunami was off the coast of Hawaii and even in Washington state.

The beaches are full of huge waves.