The first wave: About half of the first wave is part of creating the bottom form. The adjustment amplitude of the second wave after the first wave is usually large.

The second wave: sometimes the adjustment range is quite large, which makes market participants mistakenly think that the bear market is not over yet; The trading volume gradually narrowed, and the fluctuation was also good, reflecting the gradual exhaustion of selling pressure.

The third wave: usually the most explosive wave; Running time and amplitude often belong to the longest wave; In most cases, it will become a spread wave.

The fourth wave: it often appears in a more complicated form, and there are many opportunities to adjust the form in a triangle, usually ending in the range of the last fourth wave at a lower level.

Fifth Wave: The fifth wave of the stock market is generally smaller than the third wave. The futures market has the opposite situation, and the fifth wave is more likely to become an extended wave.

The correlation is as follows

In fact, the first wave can also go down. Facing the downward push, the following concepts can be interpreted in reverse. The beginning of the first wave means that the adjustment of the market situation has ended. So the first wave is actually a sign of market changes.

The relationship between wave length and intensity is usually a magic number of 0.62 or the golden section ratio, and the golden section is a magic number. Look at the energy storage of the first and second waves in the early stage, as well as the relationship between volume and price, which is also related to the recent sudden favorable policy stimulus.

It is Eliot's band theory that, according to historical data, it can be concluded that the rising cycle of a stock has to go through no ups and downs. Five waves mean five rises.

In the stock market, The 5th Wave usually rises less than the third wave and often fails. In The 5th Wave, the second-and third-class stocks are usually the dominant forces in the market, and their gains are often greater than those of the first-class stocks (blue-chip stocks and large-cap stocks), that is, investors often say that "chickens and dogs have risen to heaven", and the market sentiment is quite optimistic at this time.