Category: Money tips Release Date: 2006-06-18
Created by the American Elliott wave theory, from its birth on the day in the market is quite controversial, but it is ultimately rely on their unique value and judged effectiveness has withstood the test of the market. The basic content of the theory are: a complete cycle of the eight wave cycle of Change, from five-band waves and three-band push to amend the composition of waves, and can be further sub-9 144 waves; promote the waves with the main trend in the same direction, most of them are There and only there to extend a wave phenomenon, the other two waves in amplitude and time will be roughly the same, while the adjustment of waves are the main trends in the opposite direction. In general, the wave theory is only used to analyze the broad market index or average, and thus found an ideal trading opportunity.
Application skills A, bearing in mind the wave analysis of the three elements. Posed wave shape, wave theory, the argument is based on the number of waves on the right or wrong is essential, followed by the ratio between the wave and wave and wave at the same level the duration of each wave form wave theory, the three part of the wave analysis of the three elements. Meanwhile, the volume in the wave analysis of the role can not be ignored, especially in the main band, and is used to test the waves or projections whether to extend the waves.
B, seek common ground, to combat. When the loop before the end of a wave, wave division there is no doubt more than a possibility. Thus, when judged in the use of wave theory, we must first of all according to the rules and the waves can not be excluded personality or characteristics of the division, while looking for a reasonable and in accordance with the probability of size sorting, which is the normal procedure for reserving differences. While seeking common ground is in two or three possible among the analysis itself is derived from the wave of recent judgments and even the same afternoon, this is crucial to have the operation and significance.
C, are familiar with wave character, carefully price channel. The band is running at different times, the market is reflected in the characteristics are different, policies, fundamentals and news and noodles are not the same, but the market from pessimism to optimism or groups from optimistic to pessimistic about the process of change, but according to a similar way to continuous cycle of development, and therefore familiar with the personality of each wave that market psychology and sentiment analysis of the wave must be a great benefit, such as excluding the possibility of a very low division, but even to predict where the mainstream hotspots. Suffering from psychological and emotional impact of price movements, there is often the difference between strong and weak in general can be reflected in the stock channel, mainly: The first three waves known as the main Shenglang should be worn by the first wave on the top of the to do with the trend line L, parallel lines that the channel line, the first five waves on the Mogao has all too often not reach the line, while the first four waves in the new channel at the end of the trend line.
D, the percentage of common understanding of waves. Waves in the promotion, if the No. 1 or No. 5 wave extended, its length is often the biggest gain in the other two waves of 1.618 times, if the first three waves is extended, it is likely to far exceed the length of a first wave one. 618-fold, this time can also use the empirical formula to predict the approximate height of the first five waves, the formula for the first five waves = 1 wave × 3.236 + the first wave of a wave at the end or the top, but it does not necessarily apply to the wedge-shaped run-time driver waves; in adjusting the waves, no matter what kind of concrete way, finishing up the end of the previous decline in position usually associated with maintaining a certain percentage, such as 0.382,0.5 and 0.618 and so on.
E, note that X waves waves and failure points. In the mixed adjustment, X waves in three-wave mode to start and play a different role in order to connect the way, mostly formed under the influence of powerful external forces, but ultimately more waves can be classified as B, while in uncertain or circulation at the end is after all not a good expedient. Lang refers to the failure of the first five waves does not exceed the height of the first three waves, indicating a major increase in the previous or the market has significantly weakened, and foreshadowed the impending adjustment deeper or longer, while C is less than A wave when the wave conditions and the similarity.
