Questions about Forex Wave Theory

Wave theory is just an ideal standard form, and it does not have much operational significance in actual combat. What we usually do is just to judge whether it is similar to the god and not the likeness. And this theory, the same graph, different people can count different waves, what do you say is the practical significance of that?

Use caution is advised.

However, there is still a certain reference value when judging the general trend.

All changes are inseparable from their origins, and they should not change in response to all changes.

As long as you understand the principles of wave theory, and then judge whether you belong to the rhythm of wave theory according to different time periods.

Don't memorize the so-called 42 figures, the most important thing is to summarize in practice, the principle is constant, and the only constant in the figure is change.

Technical analysis is the study of market behavior with charts as the main means for the purpose of changing the future trend of the market.

It's roughly accurate, you have to learn, but experience in the process of actual combat.

After all, your knowledge is not at that level, you can first combine the theory, trend analysis, and some related methods to improve your ability to improve quickly, and make your own analysis rules

From a theoretical point of view, the wave theory is used for things that develop continuously, and this continuous development must have a continuous direction, which is described in both the original book and the natural development. For example, the economy always continues to grow. However, the foreign exchange market does not actually have the prerequisites for this sustainable development, so in "The Key to Market Behavior", it is said that it is not suitable.

However, from a certain point of view, for example, the original exchange rate is determined by the country's ** reserves, and now it is related to the country's economy to a considerable extent, so from this point of view, the wave theory is applicable. However, the way of use may not be the same, some people believe that the waves in the foreign exchange market are the eternal joint shape adjustment pattern, that is, the three-wave structure followed by the X-wave structure followed by the three-wave structure followed by the X-wave, and so on.

When it comes to various theories in foreign exchange trading, many foreign exchange investors will say that they are very complex and difficult to apply.

From a theoretical point of view, wave theory applies to things that develop continuously, and this continuous development must have a continuous direction, for example, the economy is always constantly growing. To put it simply, the wave theory can be summed up in one sentence: the "eight-wave cycle".

The shape of the wave will be an expansion or contraction, but its basic pattern will not change over time.

When I first learned the wave theory, I had the same doubts as you, and later through the practical summary, I personally think that it is safer to count from the bottom of 2 waves, of course, aggressive investors can start from the top of 1 wave.

However, from the relevant knowledge learned from books and teachers, it can be considered from the professional judgment that the 3rd wave is counted from the top of the 1st wave. This is why once the head and shoulders invert pattern breaks through the neckline**, the magnitude is larger than the difference between the head and neckline.

I don't know if you're satisfied, just share your experience, I hope it can help you!

Eliot's theory states:

1. Whether it is a long market or a short market, each complete cycle will have several bands.

2. The first five bands in a cycle of a bullish market are bullish and the last three are bearish; And in the first five bands, the first, third, and fifth, that is, the odd number, are ascending.

The two, four, and six bands, that is, the even number of the six bands in the even band, is obviously bearish; The seventh is an odd number, and the serial number is **. Therefore, the odd ordinal bands are basically bullish or ** to varying degrees, while the even ordinal bands are bearish or falling. The whole cycle presents a general pattern of one up and one down.

In a longer period of time, the first five bands of a cycle constitute the first band of a large cycle, and the last three bands constitute the second band of a large cycle. The whole cycle is also made up of eight bands.

2. In the bearish market, the situation is the opposite, the first five bands are bearish**, and the last three are bullish**. In the first five bands, it is the first.

One, three, and five odd ordinal bands are bearish, two and four even ordinal bands are collated, and bullish are in the third section.

One and two bands, the Great Cycle is also composed of eight bands.

3. Whether it is a long market or a short market, the third band is the longest, that is, it rises the most when it rises, and it falls the most when it falls.

In short, the three elements of wave theory are: pattern, amplitude, and period.

Pattern: The basic pattern is 5 waves up, of which wave is a correction wave, **3 waves, and B wave is a correction wave.

Volatility: Mainly refers to the percentage of Fibonacci, usually the amplitude of the latter wave is the amplitude of the previous wave, 50%, 100%, etc.

Period: Refers to the Fibonacci sequence, which is 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144 ....... These dates are also known as "windows of time" and are usually marked by new trends.

The importance of the three elements: the pattern of the wave amplitude cycle.

Wave theory is very complex, and it is recommended that you go to the relevant learning section of the ikon forum to learn more about it.