The five wave bull market run Money Tips

Category: Money tips Release Date: 2006-03-29

While the broader market slump, but no one imagined a terrible disease, because the bull market is not over the broader market rose to 4,300 points from 1,000 points, has quadrupled or a 1000-point is also reasonable. The key is the mentality should be calm and confident to be on the bull market.

If you are a big year in 2005 -2009 cycle has a full understanding, and you retain more than half of the cash, you can be relatively easy to face.

Let's take a look at the bull market run features five wave bull market there are several basic characteristics.

1 waves: Almost half of the first part of creating a wave form at the bottom of the first part of the first cycle of a wave is the beginning of this increase due to appear in the bear market decline Quotes after the rebound and reverse, the buyer is not a powerful force , coupled with the continued existence of short selling, so first of its kind one wave occurs after the first two waves up to adjust down, its rate of correction is often deep; the other half of the first wave in a consolidation after the completion of a long-term, in this class 1 waves, its larger rise Quotes from the experience, the first wave of a rose is usually the smallest of the five waves.

Wave 2: This wave is the fall waves, their adjustment considerably large margin of decline, when the Quotes in this wave in the fall near the bottom (1st wave starting point), the market appears reluctant sellers, psychology, selling pressure gradually depleted, turnover is also gradually narrowing, the first two waves will adjust to an end, in which waves that often appear in the chart of the shift patterns, such as the head end of double bottom and so on. Tape that is currently running the first two waves, 2005 bull wave is to adjust the first two waves, a continuous sharp decline is the obvious features. -3.58 Thousand are expected to be 3550 points, the first two waves near the end of the adjustment.

3 waves: the first 3 wave rally is often the largest and most explosive rise in waves, this Quotes duration and amplitude are often the longest, and investor confidence restored, turnover increased substantially, there the traditional charts break signals, such as gap jump and so on, this trend is very intense Quotes, a number of points on the graph is very easy to be broken, especially in breaking the first wave of a high point, is the most strong buy signal, as the first three waves rally intense, often "to extend the wave" phenomenon. Is expected in September 2007 -2,008-year bull market in August started the first three waves.

4th wave: the first wave is 4 Quotes rose sharply after the adjustment of waves, usually appears more complex shape, often a "tilting triangle" trend, but the first four waves of a low of not less than the first wave of the apex. -12 Is expected in August 2008 commenced the first four waves.

5 waves: the first 5 wave rally is typically less than the first three waves and the frequent failures in the first five waves, the second and third stock is usually a dominant force on the market, its gains are often more than one sector (blue-chip blue-chip stocks, large stocks), which investors often call a "few kilometers from heaven", this period is quite optimistic about the performance of market sentiment. -5 Is expected in January 2009 launched the first 5 months and end the bull market wave.