Among them, the main trend lasts for one year or more, and most stocks will rise or fall with the market, generally exceeding 20%; The mid-term trend of secondary reentry is opposite to the main trend, lasting more than 3 weeks, and the amplitude is the main trend of1/3 ~ 2/3; Short-term trends only reflect short-term changes in stock prices, and the duration generally does not exceed 7 days. ?
Therefore, in fact, the change of K-line is composed of main trend, medium-term trend plus some secondary reentry, and relatively random short-term trend.
The theory of Tao puts forward three important hypotheses.
Suppose 1: the short-term trend may be manipulated artificially, but the long-term trend of the index cannot be manipulated artificially.
Hypothesis 2: The index can always correctly predict the impact of future events.
Hypothesis 3: "Dow Theory" is an objective analytical theory. Subjectively, when using it, you will make mistakes and lose money.