Category: Money tips Release Date: 2006-08-23
To make your own technical analysis into a relatively complete system, do not understand the wave theory is the piece and bad things. Rememberå’±said before, in the technical analysis, but not the wave theory, just like cooking without salt, even though you can eat the entrance, but uninteresting, if cooking is changed to Chao Hui (or speculation), then this "taste" is an indispensable thread in the technical analysis.
Wave theory, from Dow, is a highly condensed summary of the theoretical system. Is the trend of expansion and extension of the theory, wave theory, and then start learning the number of waves, they can focus on the following points:
1, wave theory, since it is "theory", then it is the main entry point for technical analysis, "guidance" on the meaning of foreign words, not known for skill to operate, but rather focus on ideas, thinking on the building.
2, simple wave theory or "several waves", operability is not strong. Because it is a highly general theory of systems, one size fits all, so it produces a "thousand thousand wave" phenomenon. In practice, analysis and operation, set up to make use of wave theory, the concept, in combination with other trading tools to analyze and judge.
3, do not let "a few waves" fixed to live their own thinking, for a number of waves and the number of waves, generated preconceived ideas. The light of the actual market situation, follow the market, flexible application.
4, in conjunction with the transaction cycle and the game concept to the understanding and application of wave theory.
5, constitute the wave theory, the three elements are: shape, size and time. Which forms the most important. So, in a few waves, the first to identify patterns, and then conducted several waves, the order should not backward.
Elliott waves are divided into 13 kinds of patterns, which are 13 kinds of patterns:
1. A simple five-wave patterns; 2. To extend the five-wave patterns; 3. Failure or failure of the fifth wave; 4. The end of tilted triangular or wedge-shaped; 5. Guide the tilted triangular or wedge-shaped; 6 serrated; seven pairs of serrated ; 8 platform-shaped; 9-Proliferation of platform-shaped; 10 contraction triangle; 11-Proliferation triangle; 12 double three waves; 13 triple three waves.
6, wave theory is also appropriate indicators, trends, moving averages, etc. analysis.
7, we should wave theory as the main line runs through the entire technical analysis in your system.
Oh, one word summed up into a classic line: to achieve the "wave" a good, thought the most important.
