Category: Money tips Release Date: 2005-12-20
In the new edition of "investors elementary school tutorial" P199 such a paragraph: "(6) based on Elliott Wave theory analysis, stock prices began to rise significantly since the lows, such as the first wave of stock price index rose from 2,500 points to 3,000 points, the second wave from the up to 3,000 points, 4,000 points, and a third straight 4,000 points from 5,000 points, short-term goal has been reached, if, after up to 5000 points, is not improved, can no longer sell new high when the hands of shareholders. "referred to here the first wave of , the second wave, third wave is the wave theory, an increase in 1,3,5-driven waves. Many new investors to the Xiao Zhang teacher-mail letter calling for Elliott Wave Theory for further introduction.
30 years in the 20th century, Americans found that stock prices to Eliot recognizable patterns forward and reverse, the market started moving in the form of waves to form a wave theory. The stock market has its own production, development, self-discipline in decline. Stock prices are ultimately in a particular structure of the 5 wave pattern moving. Which called the increase in 1,3,5-driven waves, can be subdivided into five waves; which is called adjustment of 2,4-waves, can be subdivided into three waves, were labeled with A, B, C sub-waves; where A, C wave, as adjust the driver waves can be further subdivided into five waves; B waves can be further subdivided into three waves and so on. If we say that K-line theory is mainly used for short-term instruments, form the theory is mainly used for the center line tool, then the wave theory is mainly used for long-term trend analysis. Wave theory, the main value lies in providing a context for the market analysis, the overall position and prospects of the stock market observation.
Waves commonly used class is divided into: small waves, medium waves, big waves, circular waves, super-cycle wave. We are usually super-cycle of the first three waves of the first cycle of three waves known as the "three wave three." From the wave theory point of view, China's stock market "three wave three" golden decade bull market pattern has been formed. We can be 325 points in July 1994 began the first 3 waves super-cycle is further broken down to expand them:
â…?cycle waves: July 1994 --- 325 points, 2245 points in June 2001.
â…?cycle waves: June 2001 --- 2245 points 998 points in June 2005.
â…?circular waves: June 2005 --- 998 points, run for 10 years Manniu Quotes.
Big Wave: June 2005 --- 998 points, now under way.
(1) waves: June 2005 --- 998 points, 1678 points in May 2006.
(2) Medium wave: May 2006 1678 points --- August 2006 1541 points.
(3) waves: August 2006 --- 1541 points 2847 points in January 2007.
(4) Medium wave: January 2007 --- 2847 point-point in February 2541.
(5) Medium wave: February 2007 2541-point --- is running, was to extend the waves.
A small wave: February 6, 2007 2541 points --- February 27 3049 points.
2 small waves: February 27 3049 --- March 5 points, 2723 points.
3 small waves: March 5 2723 is currently on the touch-point --- 3612 points, is running.
"Golden years" is a concept of orders of magnitude, the first a wave running around 2 years, the same level of five waves, the simple accumulation is about 10 years; description of this wave of higher energy prices and is a long-term bull market, rather than mid-level rebound. To understand the mature market, "three wave three" running the course, ready-made example is the U.S. stock market from 1866 to 1890, a total of 24 years or so, the Dow Jones index rose 272-fold increase. More recently, there is little, Hong Kong's Hang Seng Index has also experienced the "three waves III", from 676.30 points in December 1982 started a long-term bull market lasted 15 years, the Hang Seng Index gained 16144 points in order to go down in history glorious, former Hong Kong stocks is tomorrow's Shanghai shares on the Shanghai stock market that has very important significance as reference.
This year marked by a unilateral form of stock market movements up to shocks up Manniu market, this will help to extend the bull market cycles, and stable development of the stock market. Of course, the way forward can not be plain sailing, of which there are shocks, there are twists and turns to adjust, there plummeted; however, all of which will not change Manniu Quotes major trend, because China's economy continued to grow, a continuous appreciation of the yuan , listed companies continue to enhance the performance of these three factors have not changed.
With the current market, we should be thinking more in the bull market to treat, at least the past five years experience in the bear market is not suitable for the current market trends upward in the circumstances, the adjustment should be based on a strong finishing treatment and adapt to the market, conform to the trend Quotes of the leading ideas is strong.
