How to use the wave theory What is the wave theory?

Theory illustrates trends in practice, and limited regulation is possible only in the country's financial sector. The theory can mean: 1

The rise and fall of the stock price is an irregular change, but the whole trend has a clear trend, that is, although it is not clear on the chart whether the stock price will rise or fall the next day or the next week, there is still a clear trajectory to follow in the entire long-term trend. 2.Once a trend has begun, it is difficult to stop or change.

This principle means that when a ** or ** trend is presented, there will not be a 180-degree turn in the short term, but it should be noted that this principle refers to pure market psychology and does not apply to the occurrence of major bearish or bullish news. 3.Unless there is a positive indicator of technical confirmation, it should be assumed that the original trend will continue.

5.The main trend in any particular direction is often blocked by the forces in the opposite direction, but the fluctuation of the amplitude of 1 3 or 2 3 will not have much effect on the overall extended trend. That is to say, assuming that an individual ** in a period of ** amplitude of three yuan**, when the retracement is one yuan or even two yuan, it should still not be regarded as **trend has reversed, as long as it does not exceed the amplitude of 2 3, the entire trend should still be considered to be upward**.

6.When a stock price moves sideways for days or even weeks, it can be effective in counteracting the forces in the opposite direction. This continuous horizontal arrangement has recognizable characteristics.

7.The divergence of the trend line is accompanied by a formal reversal of the line, but this is not inevitable. In other words, this principle is quite reliable, but not without exceptions.

8.According to the Dow Theory, there must be a recognizable pattern before a key change in the stock price trend. For example, when the head and shoulders crown appears, it may be reversed; When an inverted head and shoulders is formed, the trend breaks out.

9.At the critical moment when the road changes, the trading volume of individual products must have a specific meaning. For example, in the initial period of upward movement of the line, the trading volume must be accompanied by an expansion; When the line reverses, the volume must shrink with it.

10.The market is likely to have a strong market with continued good performance, while the weak** weakness is likely to persist for some time. We don't have to start from the factors of whether the main force is involved, only from the simplest psychology of chasing the rise can confirm this principle.

11 In the daily or weekly charts of individual **, the support zone and the resistance zone can be clearly distinguished. These two zones can be used to confirm whether the trend will continue or reverse completely. Assuming that the line has broken through the resistance zone upwards, then the stock price may continue to rise, and once it breaks through the support zone downwards, the stock price may revert to the low tide.

However, it should be noted that the Dow Theory only infers the general trend of **, but cannot promote the rise or fall in the general trend to that extent.

Theories that can be met but not sought. Being a ** and doing ** are completely different. How to use it depends on how much you know.

Let's put it this way, we all know that buying at the bottom of the wave is like selling, and selling at the top of the wave. It's up to you to know where the bottom of the waves is. Where is the crest of the wave?

Hope it helps.

Wave theory is an analysis system that has been highly valued by the global industry after being pioneered by American analyst Eliot in the last century.

1. What is the wave theory?

In the middle of the last century, the American ** analyst Elliot found through a long period of research and development that the Dow Jones index seems to show a very regular fluctuation pattern in the development process of the past few decades. On this basis, Eliot introduced the so-called wave theory. The general content of the theory is that each ** cycle roughly consists of five ascending waves and three ** waves.

2. How to use the wave theory?

In essence, wave theory is actually a first-class analysis method that uses the mathematical thinking of probability and statistics, and combines the law of change of the economic cycle. When investors use this analysis method for investment operations, the most important thing is to accurately judge whether a certain ** is in an "upward wave" or "** wave" in a certain period, and to better judge the stage in the trend, so as to determine their investment behavior.

3. What to pay attention to.

In fact, wave theory, like other technical analysis, is based on the logic that what happened in the past will be repeated in the future. However, this is not the case in practice, so when investors use this theory for analysis, they must combine fundamental analysis, and cannot simply use this theory to determine their investment strategies and behaviors.

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.

Wave theory (joint adjustment wave).

Elliott's theory is that whether it is a long or short market, there will be several bands in each full cycle. 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.

One, three, and five, i.e., odd numbers, are ascending, first.

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. In the Elliott Bands theory, the opposite is true for the bearish market, with the first five bands being bearish and the last three being 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.

Whether it is a long or short market, the fifth band is the longest, that is, it rises the most when it goes up, and it also falls the most when it falls. The book is "Elliott Wave Theory – The Key to Market Behavior".