Category: Money tips Release Date: 2006-02-10
Investors should be aware that Elliott wave theory, the key mainly includes three parts, first, for the wave patterns; Secondly, the ratio between the wave and the wave relations; third, as the time interval between waves, that these three parties, wave shape is most important.
Wave shape, is Elliott wave theory, the theoretical basis, so the number of waves of right or wrong, on the successful application of wave theory of investment opportunities are essential.
The so-called basic rules of a few waves, only two. If investors are able to wave the number of these two basic rules in the use of the stick to normal can be said to have half the battle.
Several waves of two basic rules:
1, the third wave (the third promotion) is always the first to the fifth wave does not allow the shortest one wave. The actual trend in the stock price, usually the third wave is the most explosive wave, and often will become the longest one wave.
2, the fourth wave of the bottom, not lower than the first wave of a wave top.
Apart from the above two in a few waves when the iron law, there are two additional rules, these two additional rules are not unbreakable iron law, it is primarily to help investors better able to distinguish wave type, to help correct the number of waves工作.
Supplementary Rules 1: alternative rules, if the entire wave-shaped loop, the second wave of simple forms and shapes, then the majority of the fourth wave will be more complex forms and shapes. The second and fourth waves on the wave nature, all belong to the adjustment of walking upstream waves, the adjustments in the form of waves are many types of seeds. This supplementary rules can help investors better analyze and speculate on future trends and market price changes, and thus grasp the access time.
Supplementary Rules 2: The stock market is rising after a period of a period of adjustment, especially when the waves are part of the fourth wave to adjust the time, most will be at a lower level of the fourth wave to complete. Usually context of the circumstances and will be nearing the finish line near the end. This supplementary rule is mainly to provide investors with the end-point adjustment, which enable investors to understand the adjustment of coming to an end, we should pay attention to their many short time strategy. Does not operate so that investors have committed a great wrong direction, cast an irreversible situation.
