Home The wave theory process of counting waves and its use

The wave theory process of counting waves and its use

According to the arguments of cashback forex calculator Online theory, price fluctuations from bull to cashbackforexprofitcalculatorar cashbackforexcalculatorOnline completion cycle, including 5 r cashbackforexpipcalculatoring cashback forex and 3 falling waves at the same time, the 5 waves of the main wave can be divided into 21 small waves, the 3 waves of the adjustment wave can be divided into l3 small waves in 34 small waves, the 21 small waves of the main wave can be divided into 89 micro waves, the l3 small waves of the adjustment wave can be The first wave usually appears in the area where the stock market bottomed out it is the beginning of the 8-wave cycle, as the rise of this segment of the market appears in the short market downtrend after the reversal of buyer power is not strong, coupled with the continued existence of selling pressure on the short side, thus the rise of the first wave is usually The second wave is the first wave of the adjustment wave, down the adjustment range is quite large, may adjust the first wave of 38.2% or 6l.8%, may also eat the first wave of the rise of 100%, so that market participants believe that the bear market has not yet ended when the market fell to near the bottom (the first wave of the starting point, when the psychology of selling began to occur), the volume gradually shrink when. The third wave of the upward trend may be the largest and most explosive, fissure rise in the third wave is the most common phenomenon, it can help to confirm the third wave of investor confidence in the market at this time, the volume rose significantly, but also as another reliable basis for confirming the third wave, especially in the breakthrough of the high point of the first wave, is the best buy signal number of waves of the first rule is that the third wave must Wave 3 is usually 1.618 times longer than wave l and wave 5, and may climb to 2.618 times or other magical number multiples When the current market is confirmed to be wave 3, any purchase or sale should follow the trend to buy low, and should not sell short against the market Wave 4 is the adjustment wave after the market has risen sharply, usually in a more complex pattern, but also often appear to be an inclined triangle trend The lowest point is often higher than the high point of wave l. There are three possibilities for the end of the wave: (1) 38.2% of wave 3; (2) retreat to the next level within the range of wave 4; (3) if a flat or zigzag shape, the length of wave 4 and wave 2 will be the same as the second rule of counting waves is that the bottom of wave 4 can not be lower than the top of wave l. Towards the end of wave 4, the momentum indicators usually appear When a group of five rising waves is completed, the fourth wave of the group, based on the characteristics of the fourth wave, usually constitutes the target of the next correction market may bottom The fifth rising wave, in a bull market, is often the longest wave and often appears to extend the wave while in the market of individual stocks, the fifth wave is usually smaller than the third wave If its high does not exceed the third wave, it will The bull market failure of the double top type, in the wave of the second and third line stocks are usually the dominant force in the market, the rise is often greater than a line section, the market sentiment is quite optimistic of course, there are often cases of failure, that is, the rise may not be very large, investors should be appropriate to see the good. Adjustment wave consists of two down a rise 3 large waves, respectively, with A, B, C, the characteristics of the waves are as follows: The A wave: in the wave most investors believe that the rising market has not yet reversed, at this time only a temporary back to adjust the phenomenon in fact, the A wave down, in the 5th wave usually has a warning signal, such as: volume divergence or technical indicators of divergence generated but because of the market mentality at this time is still relatively optimistic A wave sometimes appear horizontal finishing or zigzag trend B wave: usually volume is not large, generally speaking, is a long escape line However, its rising pattern, it is easy to make investors believe that another wave of upward momentum, thus forming a long trap, so many investors in this tragic trap C wave: is the end of the adjustment wave, usually down strongly with similar characteristics of the third wave, the decline is large, the time lasts long, and a comprehensive decline. And a comprehensive decline in the situation when the A, B, C wave to zigzag operation, the length of the A wave and C wave will tend to be consistent, the low point of the C wave will naturally be lower than the bottom of the A wave wave theory of the basic principles: (1). Alternating principle: that is, the type of adjustment wave is in an alternating manner if the second wave is a single adjustment wave; then in the fourth wave will be more complex adjustment wave (2). The pattern of adjustment wave consolidation can be used to predict the strength of the market (3). According to Elliotts law of nature, the low of wave 4 cannot be lower than the high of wave 1; wave 3 is often the longest wave, and never the shortest wave, so you can count the waves correctly (4). The principle of equal wave amplitude: in the 1st, 3rd and 5th wave three pushing waves, at most only one of them will appear to extend the wave, while the other two pushing waves are slightly equal, will still appear to 0.618 golden ratio of reciprocal relationship (5). Orbital trend: Elliott believes that the wave theory trend, should be within two parallel orbits Wave theory application: When investors know the whole process of a large cycle of operation, they can predict the general trend First, investors should be clear about the current position of the general trend, and then you can determine the next step to be taken according to the number of various waves indicated by the wave theory For example: When investors have Knowing that a stock has ended 5 rising waves, then the upcoming may face the arrival of three falling waves, so the overall operation of the idea must be based on the short market to reduce the weight of the way high wave theory shortcomings: (1). Wave theory on how to count a complete wave, there is no clear definition of the actual rise and fall in the stock market trends, often not according to the 5 l 3 down this mechanical pattern, how the number of waves completely by the subjective decision of individuals every wave theorists, including Elliott himself, many times will be troubled by such a problem: that is, whether a wave has been completed and the start of another wave? The judgment of different waves on the future market trend will be very different, according to the operation of the risk is quite large (2). Wave theory wave, can be infinitely extended, rising wave can include all the rising trend, even a giant wave, a hundred years can be, and falling wave is also the same and, regardless of rising wave or falling wave are often a variety of variant forms, which makes the division of the wave is quite complicated and difficult to grasp, which also makes the wave theory is difficult to carry out the practical application or increase the probability of error in judgment (3). Wave theory is often used to judge the general trend, but cannot be applied to the selection of individual stocks, so there are limitations (4). Wave theory is based on magic numbers, and its rationality is not proven, so it is difficult to find a convincing scientific basis.

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