Category: Money tips Release Date: 2006-01-19
Wave theory is Nalph Nelson Eilliott made in 1938, he would type on the market price trends, summarized a few constantly repeated pattern. Eilliott induction of the entire market price fluctuation pattern was found regardless of the level of the size of the trend, are followed up a five-wave decline in the basic three-wave rhythm, five waves of the rising trend can be divided into three push waves (impulse wave), as well as two amendments to wave (corrective wave), 3 push waves 1,3 and 5 respectively, for the first wave, while the amendment to section 2 and 4, compared with wave-wave; in three-wave downward trend wave is divided into, b, c three-wave. This rise and fall of the eight-wave fluctuations in the formation of a complete cycle of eight, and this cycle repeated continuously sustained, and that the complete cycle of eight volatile phenomenon exists in a variety of time scales, while the formation of a variety of sizes waves, each wave can contain more small-scale fluctuations, and each one wave to another are also included in a larger scale waves.
In bear markets, the volatility pattern Yicheng same pattern emerged in the trend, but the opposite shape from top to bottom. From the diagram b, (a) (b) two-wave, which is constituted by eight sub-waves.
Overall, the principle of wave theory, wave theory is based on the price of construction in the induction arising from acts of the past, and its philosophy is the more fundamental human desires ancient and modern alike, so in the repetition of historical phenomena will continue to make sustained wave theory, effective. However, Eilliott wave theory, the base will be planted in the Fibonacci series development. The so-called Fibonacci sequence, A1, A2 ,..., An ,...,..., its formation rule: An = An-2 + An-1. Therefore, the number of columns arranged as follows: 1, 1, 2, 3, 5, 8, 13, 21, 34, 55 ...... which is 5 +3 wave theory, the number of amendments to promote the spread of the wave number of waves.
Wave pattern classification the composition of the above waves the basic theory of its most simplified. In general, the smaller the time scale of observation period, the wave pattern will follow the basic rules of conduct, but the time-scale widening, the wave pattern of variation will occur. Therefore, in the actual case, the pattern of price movements than a simple eight-wave is also the above-mentioned complex. Variation of wave patterns in the promotion of waves and wave conditions at the time the amendment is different from the variation of wave patterns to promote a more simple, while the revised wave patterns are more complex variations. In understanding the variation of wave patterns, all the actual wave patterns are on the market which would be inseparable from the changes.
A major principle: the volatility of any one sub-trends, will tend to one of its big wave a consistent trend. This principle will help to waves moving judgments. Observe the wave patterns of variation can be divided into promoting the wave patterns of variation and correction wave variation patterns. As the promotion of the direction of wave is the main trend, so its easy to identify the waveform more obvious, but the waves were more difficult to amend a clear identification and segmentation.
Promote the variation of wave pattern (a) promote the wave pattern with an extension of, and in each cycle, the three most will be to promote wave
Wave and the wave will appear only where an extension of the so-called wave-wave extension pattern refers to the wave occurred in elongated, or enlarged, which make it one of the sub-waves - an extension of the size of waves and waves of similar size to the original level making waves in the wave number of the original class may appear to be from 5 into a 9 wave number. Promote the extension of waves often occur in the third wave, but the first and fifth waves are an extension of waves may occur. And in subsection (5) wave occurs has an important extension of the wave characteristics, namely, in the following (a) the amendment will be sub-wave-wave the first two waves of its revised range, while the amendment will be ©-wave (4) wave for its revised range.
(b) 5th wave failure may occur (failure) pattern when the first wave of five failed to break the high point of the first three waves of the high points will be called a failure of the first five-wave pattern. This pattern symbolizes the weakness of the original pattern, implied the market will soon reverse the trend. The pattern there is another type of rule, that is, when the first five-wave pattern of failure occurs, could be back to view the cycle of the first two waves back to the rate will never exceed 100% of wave 1.
5th wave may be a wedge-shaped (wedges) or an expanding triangle pattern emerged, and each wave can be broken down into three waves 3-3-3-3-3 pattern. And this pattern may also occur in c-wave, are driven to accelerate the end, and the reverse trend for the next one to prepare for this endeavor.
Revised wave variation patterns and promotion of wave patterns compared to amend the wave pattern of variation is more complex, or even more difficult to identify. In general, the amendments include the wave pattern of variation jagged pattern (zigzag) 5-3-5, platform type (flat) 3-3-5, triangular pattern (triangles) 3-3-3-3 -- 3 and the first three hybrid.
A total of 2 1 [2]
