Data:2009-12-12 2:34
Category: Money tips Release Date: 2006-05-17
Wave theory is the founder of Ralph Nelson Elliott. In 1938, based on original works by TS Eliot's "wave theory" is an official publication of the book by Charles Collins, in 1946, Elliott Wave Theory has left for posterity the authority of the book "laws of nature - the mysteries of the universe," In 1948, Eliot died.
Elliott Wave Theory is that the Dow theory, a very necessary complement to, and actually beyond the Dow Theory. The initial wave theory is mainly used for stock market average, wave theory suggests that the stock market rise has followed a five wave decline in three waves regular exercise. Increase in five waves are Arabic numbers, 1,3,5 known to promote wave, 2,4 because it is the adjustment for the 1,3 is called adjustment of waves; 5 waves up after three waves began to adjust, adjust The three waves by the letters a, b, c mark.
The length of the sub-trend, in other words the trend there are many different wave level (numerous). Each wave can be broken down into a smaller one of the waves, each wave is itself part of a larger wave of 1. Elliott will be the trend is divided into nine, from the centuries-old cycle of large waves super-class, down to the hours of sub-micro-wave level. In the application of wave theory, wave-level classification accuracy is a difficult thing, but remember eight wave cycle is constant, adjusting the waves are definitely not a five-wave form, in a bull market if you see an obvious 5 waves down, it means that it may be a larger one in the first three waves down waves. Practical applications, investors should first see how the market is no doubt that there is no standard wave shape, as many market simply does not apply wave theory, in identifying what the market is currently in wave after the other technical analysis tools then select point and Admission .
