Is there a case where the height of the fifth wave is smaller than that of the third wave?

Yes, the fifth wave is one of the three major driving waves in the ** market, but its increase is smaller than the third wave in most cases. The fifth wave is characterized by high sentiment and often optimism flooding the market. Judging by the shape and magnitude of its completion, it often ends in a failed form.

In the operation of the fifth upward wave, second- and third-tier stocks will rise on a whim, and often rise by a very considerable amount.

In addition, the following are the detailed characteristics of each wave in Eliot's wave theory:

Wave 1 After the start of the entire wave cycle, most investors in the general market do not immediately realize that the upswing has begun. So, in practice, more than half of the first wave is part of the building of the bottom pattern. Since the first wave of the market generally occurs at the end of the short market, the bearish atmosphere in the market and the methods used to the short market operation have not changed, so the second wave that follows the first wave of bottoming is usually larger.

The second wave has been mentioned above, usually the second wave in the actual trend of the adjustment range, but also has a greater lethality, this is mainly because market participants often mistakenly believe that the bear market has not ended, the second wave is characterized by the gradual shrinking of the volume, the fluctuation range gradually narrowed, reflecting the gradual exhaustion of selling pressure, the emergence of traditional graphics in the steering pattern, such as the common head and shoulders, double bottom, etc.

The third wave In the vast majority of trends, the third wave belongs to the main ascending wave, so usually the third wave belongs to the most powerful wave. Its main features are: the third wave usually runs for the longest wave in the whole cycle, and its upward space and amplitude are often the largest; The trajectory of the third wave will mostly develop into a rising wave; In terms of trading volume, the trading volume has been sharply enlarged, reflecting the volume energy with upward potential; On the graph, it is often possible to break out with an unstoppable gap, giving a strong signal of a breakthrough upward.

Fourth Wave From the perspective of the structure of the pattern, the fourth wave often runs in a triangular correction pattern. The end of the fourth wave is generally difficult to foresee. At the same time, investors should keep in mind that the bottom of the fourth wave is not allowed to be lower than the top of the first wave.

Fifth Wave In the market, the fifth wave is one of the three major driving waves, but its gains are smaller than the third wave in most cases. The fifth wave is characterized by high sentiment and often optimism flooding the market. Judging by the shape and magnitude of its completion, it often ends in a failed form.

In the operation of the fifth upward wave, second- and third-tier stocks will rise on a whim, and often rise by a very considerable amount.

There is no strict definition of the length of the five waves, only the definition of three waves is not the shortest rising wave, in other words, for three waves, all five waves are suitable for both long and short waves.

In the wave theory, it is generally the ratio of one wave to three waves, one wave to five waves, three waves are generally the first division multiple of a wave, such as times or times, etc., generally three waves will be greater than one wave, if three waves are equal to one wave, then five waves are more than 1 times of a wave, such as times and so on. If three waves are one wave or some other split multiple, then five waves will be equal to one wave.

No, wave 3 is a trend wave, it is easy to identify, the volume is the largest, the 5 wave is not as large as the 3 wave, but it will be higher than the apex of the 3 wave, otherwise it is not the 5 wave, but the B wave**.

The height of the fifth wave in wave theory is that the fifth wave is the last wave in the ascending, and the strength varies. and the height of the first wave is not the same. 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 the most lethal because of its long duration and amplitude.

The basic sampling data of Eliot's model is taken from the Dow Jones index in the United States, which determines the limitations of its application from the innate nature. The flaw of wave theory is that it is not easy to distinguish between large and small waves; Waves come in many forms and are not easy to judge. It is mainly used for analysis and ****** of the general trend, and is not suitable for the selection of **.

What is the height of the fifth wave in wave theory? Is it the same height as the first wave? The formula for calculating the target area A of 5 waves from the rise of 1 wave:

5 Wave Theoretical Height = 1 Wave Peak + 1 Wave Rise*

Wave 5 is the length of the first wave or the third wave is similar.

From wave 1 to wave 3, the formula for calculating the target area b of wave 5 **:

5 Wave Minimum Theoretical Height = 3 Wave Tops + (3 Wave Peaks - 1 Wave Lows) * 5 Wave Maximum Theoretical Heights = 3 Wave Peaks + (3 Wave Peaks - 1 Wave Lows) * It is also worth noting that the fifth wave sometimes has a failure pattern, and the vertex cannot rise above the top of the third wave. This type of pattern is rare, and the key to identifying it is to count the five full waves in the fifth wave (so you can use these to calculate the height of the possible 5 waves in the future).

The formula for calculating the target area A of 5 waves from the rise of 1 wave:

5 Wave Theoretical Height = 1 Wave Peak + 1 Wave Rise*

Wave 5 is the length of the first wave or the third wave is similar.

From wave 1 to wave 3, the formula for calculating the target area b of wave 5 **:

5 Wave Minimum Theoretical Height = 3 Wave Tops + (3 Wave Peaks - 1 Wave Lows) * 5 Wave Maximum Theoretical Heights = 3 Wave Peaks + (3 Wave Peaks - 1 Wave Lows) * It is also worth noting that the fifth wave sometimes has a failure pattern, and the vertex cannot rise above the top of the third wave. This type of pattern is rare, and the key to identifying it is to count the five full waves in the fifth wave (so you can use these to calculate the height of the possible 5 waves in the future).

Bottom line A complete cycle consists of eight waves, five up and three down.

Waves can be merged into higher waves, or they can be split into smaller waves of the lower level.

The waves that follow the main stream can be divided into five smaller waves one level lower.

Of the three waves, the third wave cannot be the shortest.

If any of the three impulse waves becomes an extension wave, the duration and amplitude of the other two waves will converge.

Correction waves usually run in a pattern of three waves.

**Split Theory Singular Number Combinations are the data basis of Wave Theory.

The rate of relapse that is often encountered is and.

The bottom of the fourth wave cannot be lower than the top of the first wave.

The Elliott band theory consists of three parts: pattern, ratio, and time, and their importance is in order of ranking.

Elliott's band theory mainly reflects the psychology of the masses. The more people participate in a market, the more accurate it is.

Wave theory can be divided into three parts: one is the shape of waves; the second is the ratio between waves and waves; The third is time, and the importance of the three is in order.

When analyzing wave patterns, it is sometimes difficult to distinguish the market trend, and it is possible to find several wave patterns that can be established at the same time, in which case, it is helpful to understand the characteristics of each wave. The characteristics of each wave are briefly described below.

1) First Wave: About half of the first wave is part of creating a bottom pattern. The second wave that follows the first wave of this type usually has a larger adjustment amplitude; The remaining half of the first wave follows a major correction pattern, and this type of first wave rises more substantially.

2) The second wave: sometimes the correction is quite large, making market participants mistakenly believe that the bear market is not over; The trading volume is gradually shrinking, and the volatility is thinner, reflecting the gradual exhaustion of selling pressure; Turning patterns in traditional charts, such as head and shoulders inverts, double bottoms, etc., appear.

3) The third wave: usually belongs to the most powerful waves; The running time and amplitude are often among the longest waves; Most of the time it becomes an extension wave; Significant increase in trading volume; Breakout signals from traditional charts, such as gap jumps, etc.

4) The fourth wave: It often appears in a more complex pattern, and there are many opportunities to run in a triangle adjustment pattern, usually ending within the range of the lower level against the previous fourth wave, and the bottom of the wave will not be lower than the top of the first wave.

5) Fifth wave: **The fifth wave rises in the middle and is generally smaller than the third wave. In the ** market, the opposite situation occurs, and the fifth wave has a greater chance of becoming an extended wave; Market optimism is above all else.

6) Wave A: Most market participants believe that the market trend has not yet reversed, only as a short-term adjustment, after the A wave of the flat adjustment pattern, the B wave will appear in an upward zigzag pattern, if the A wave runs in a zigzag pattern, then the B wave is mostly a flat adjustment wave.

8) C wave: strong destructive power, very similar to the characteristics of the third wave, comprehensive **.

The fifth wave.

The first wave is generally difficult to spot, and it is hidden and slowly climbed.

Now it's the fifth wave, and it's mainly guest-oriented.

Dr. Peng, December 7th to April 11th is the first wave.

The number of waves also depends on the cycle. In the middle line, it can basically be identified as the bottom five waves.

The first wave is generally stable and hidden, the amplitude is very small, the rise and fall have nothing to do with it, climb slowly, and the straightening is beautiful. Or build a platform, which is the so-called strong consolidation. It is also**small amplitude,**beautiful and neat.

The principle is that at this time, the fundamental bullish news is in a hazy stage, the bears are waiting, and the bulls are slow.

The second wave sometimes has, sometimes it doesn't. If there is, it is also **neat and beautiful. **Rounded.

The third wave is the soaring stage, ** goes up in a straight line, and the trading volume does not change much every day, neat and beautiful. The principle is that the fundamental bullish news is confirmed to be true, and the market bulls continue to enter. The original bears also temporarily turned long, and the stock price soared.

The fourth wave often has a big correction or a long period of sideways. Sometimes the third wave of ** is eaten all. The amplitude is slightly amplified.

The principle is that the bulls run out of funds, the stock price reaches the most advanced level that matches the fundamentals, and some of the earlier bulls begin to turn short, and the original bears begin to regain lost ground.

The fifth wave is the first guest-oriented. **Messy and untidy, often manifested as**winding on one side**, with a large amplitude. These are all caused by the sentiment of the market**. Confidence is not firm can be seen on the **.

It's basically exactly the same as Elliott's description of waves.

If you want to soar, the key is to find the hidden first wave and continue to pay attention.

Dr. Peng's plate is relatively large, and there are many funds involved in all aspects, so the law of large numbers can be well expressed, which is a typical case of studying waves.

There is the third wave. It seems that no one can count the waves, I'm not good at this, haha.