Rule Of Number Wave In Stock Market

　　 shares Rule of wave in market

Investors should understand that Eliot's wave theory mainly consists of three parts: first, the form of waves; second, the ratio between waves and waves; third, as the time gap between waves, the wave form is most important among the three.

　　 wave The form is the basis of Eliot's wave theory. Therefore, whether the wave number is correct or not is very important for the successful use of wave theory to grasp the timing of investment. There are only two basic rules for so-called waves. If investors can stick to these two basic wave rules in normal use, it can be said that they have been half successful.

　　 Number wave The two basic rules are:

One, third waves (third push) will never be allowed to be the shortest wave in the first to fifth waves. In the actual trend of stock prices, usually the third wave is the most explosive, and it will often become the longest wave.

Two, the bottom of fourth waves should not be lower than the top of the first wave. In addition to the above two rules of iron in the number of waves, there are two supplementary rules. These two supplementary rules are not unbreakable iron rules. They mainly help investors to better distinguish wave shapes and help correct wave work.

Supplementary rules 1: Alternate Rule: if the second waves appear in a simple form in the whole wave shape, most of the fourth waves will appear in a more complicated form. Second the wave and the fourth wave belong to the adjustment wave of the countercurrent, in nature, and there are many seed types to adjust the wave shape. This supplementary rule can help investors to analyze and speculate on the future development and changes of market prices, so as to seize the opportunity to enter and exit.

Supplementary rule two: the stock market has entered the adjustment period after a rise. Especially when the adjustment wave belongs to the fourth wave, most of them will be completed in the fourth wave at the lower level. Normally, the end will be near the end point. This supplementary rule is mainly to provide investors with the end point of adjustment so that investors can understand the strategy of making more or shorter when adjusting the approaching end. It does not make investors manipulate the big mistake of direction, which is irreversible.