Wave theory

Wave theory is a important composition part in technical analysis field. This theory is from technology great master Ai a kind of price tendency analysis tool of brief special invention, analyse and foresee according to the fluctuation law of period cycle that share is pointed at the tendency with share price.
Its theoretical elaboration is as follows: Share price goes through five fluctuation continuously and goes up , fluctuate when having completed rising five times( the promotion of name after wave), then, can arise the decrease of three fluctuation( call to adjust wave). If this eight fluctuation forms one of share price change, circulates. Then, again begin the adjustment of 5 second rising waves and 3 decrease waves. Finally with 5 rising waves, announce that all rising processes finish. In final stage, will not arise two so little three adjustment waves before picture, generation carry out appearance for completely five rising wave in rising process substantially three fluctuation of adjustment. This theoretical cycle is basic with" 8 wave cycles". In every complete process of rising / decrease, containing have a 8 wave cycles , and have partial circulating in cycle , have less cycle in partial circulating.
In wave theory, 5 rising waves have been been called as 1, 2, 3, 4 and 5 waves respectively , decrease 3 waves to be called as A, B and C wave respectively, in which 1 , 3 , 5 , B wave tendency upward, 2 , 4 , A and C wave tendency downward.
This theoretical
The 5 composition waves that
Wave 2 can not
In wave 1, 3 and 5, the length
In if wave 1, 3 and 5 any a wave becomes
The base of wave
Wave 3 usual is prolong wave,
Basis the rate of golden section,
The range of wave 5 the total range
The rise tendency of wave 5 is usually
Is adjusting the 3 waves of wolf ,
Investor utilizes the key of wave theory correctly after having grasped the basic principle of wave theory , lies in the feature of each wave of accurate assurance to resemble with the table in each wave market, estimate " its range " and "width".
The 5 rising waves of wave theory we may think
Wave 1 is the beginning of 8 wave cycles, also is bull market start , usually, it is minimum in 5 rising waves, its rising wave prolong the range of wave size is decided by wave 1. So, general investor is the size of wave 1 into the important basis of city.
After wave 1 last liters, because of nominal throw to press return is larger than is bull, therefore , 2 wave adjustment fallings, it is very deep that it returns the range of gear, sometimes, the starting point that falls to near wave 1 should be right now regard as the very good opportunity of copying base again.
Wave 3 often most have explosion force prolong wave, and to go up , main wave is the duration of this rising of quotations on the stock market and the steady rising issue of bull market and has often longest range, especially, in a breakthrough wave point, it is most strong to buy in signal.
In wave 5, the trade campaign that belongs to bull market boiling stage, 2 or 3 line stock rise is often larger than the rise of blue chips , makes investment in speculative share , door share often profits is quite many, but what deserve to be noticed is that the stock market will soon enter phony market.
Wave A appearance, the most investor moods
Wave B appearance rising quotations, investor is noticing right now the bull trap that does not fall into banker , and is covered by Gao Wei firmly. This wave is usually called as to run for life wave, it is final dispatch opportunity.
Wave C falls tendency is strong , fall the overallness with big and long time is declining wave, it is to have to kill and wound a wave of force , will come in and go out the stock market carefully right now.
Ai slightly special wave theory is the analysis tool of a set of subjectiveness winner, the different several law of analysis person for wave is different , is nearly impossible to be accurate for the partition of wave to limit , has higher requirement for the judgment force of investor. At the same time, this theory is foreseen mainly used in the analysis for market tendency general trend , is improper for to foresee for the analysis of share.