Open the k-line for any one of the ticketsWave theoryThe view is that the rise is five waves, the fall is three waves, combined with eight waves. Sounds simple, but really count, 1,000 people can count 1,000 waves。
Wave theory is not used to accurately measure waves, but to understand the pace of the market。
Five waves up and three waves down
Elliott's wave theory suggests that market movements follow a fixed cycle: 5 waves drive + 3 wave adjustments = 8 wave cycles。
In five waves, one, three, five waves are upswings (driving waves) and two, four waves are backswings (adjustment waves). In the three waves, waves a and c are down and waves b are rebounding。
Think of it as a wave: a wave comes in, and then back, and then the next wave comes in. Waves are always waves, but each wave is different in size and rhythm。
Reference wave type:
- wave 1: start wave, small increase, suspicious rise。
- 2 waves: turn back, push back, wash the unsure out。
- three waves: the main upswing, with the largest and largest increase, usually 1. 618 times the size of one wave。
- 4 waves: turn back, turn back small, pull back and make up。
- five waves: last wave, less than three waves, most intense。
- wave a: the fall started, most people thought it was a backlash。
- wave b: repulsion, seduction, locking up high-stringers。
- wave c: the main downfall, the biggest downfall。
Thousands of waves. Wave structures are more important than waves
Everybody learns the wave theory, and it's now wave number, but waves are the most useless part of the wave theory. Because of the different starting points, a completely different wave type can be counted, which is always controversial。
The true value of wave theory is wave structure. However many you count, there are a few structures that are certain: three waves must be the largest increase (not the shortest push wave), four waves will not break the high point of one wave (in the rising trend), and adjustment waves will always be three waves (abc), not five waves。
These structural rules are much more important than waves. If you're counting waves that violate these rules, you must be wrong, not wrong in the market。
Remember: count waves are art and structure are ways, and art can be a thousand and only one。
Three waves and c waves are the two most worth doing
Not every wave in the eight waves is worth participating. There are only two ways to make a lot of money: three waves, three waves, and c waves。
The first wave is small, the second wave is back, and the second wave is easily washed out; the fifth wave is the last wave, which can be reversed at any time, with high risk. There are only three waves, with the largest increase, the clearest trend and the smallest reversal, the most comfortable segment of many。
How do i identify three waves? Three features: crossing a wave height, significantly magnifying the turnover, and not breaking a wave height. Once confirmed for three waves, they should be held back and not get out of the car because of short-term recall。
On the other hand, wave c is the largest part of the decline, and currency holding is the best option, not the bottom of wave c。
Rules of engagement: 1 wave of silo test, confirmation of possession of 3 wave, 5 wave reduction, abc wave air silo. One wave and five wave make small money and three waves make big money。
Counting: you lost 15 per cent in one wave, 30 per cent in three waves, and eventually earned 10 per cent; if you lost 4. 5 per cent in one wave, 4. 5 per cent in two waves, 30 per cent in three waves, and 24 per cent in the third wave. One and a half, 14 per cent。
Three pits
One, a thousand people. The same figure is different in size, so don't argue with others about wave size. Second, prolong the wave. Three or five waves may be prolonged, turn into children, which is more complex to count. Third, the wave of failure. Five waves may be low-intensity, with a direct reverse called failure five waves。
The saddest level: not washed out in two waves and four waves
Two waves and four waves are backsliding, which is large and fast, in which most people are washed out, missing the rise of three waves and five waves. The true discipline is to confirm that one wave is light, that two waves are holdable until one wave is low and three waves start. The callback is an opportunity to get in, not an escape signal。
As a matter of course, the wave theory is highly subjective, with thousands of people in it, and wave rules may be rendered ineffective by changes in the market environment
This paper deals only with methodology and does not constitute any investment proposal, the market is risky and decision-making needs to be independent。
