Wave 1: (1) almost half of wave 1 belongs to the first part of building the bottom form, and wave 1 is the beginning of the cycle. Because the rise of this market appears in the rebound and reversal after the fall of the short market, the buyer's power is not strong and the short market continues to sell. So in this 65438, the other half wave of (2) 1 appears after long-term consolidation. In this wave of 1, its market rose sharply. Experience shows that 1 wave is usually the shortest among the five waves. The second wave: this wave is a downward wave. Because market participants mistakenly thought that the bear market was not over yet, the adjustment fell by a considerable margin, almost eating up the increase of 1 wave. When the market falls near the bottom (1 the starting point of the wave), the market appears reluctant to sell, the selling pressure is gradually exhausted, the trading volume is gradually reduced, and the second wave of adjustment will come to an end. In this wave, there is often a turning point. The third wave: The rising trend of the third wave is often the biggest and most explosive rising wave. The duration and amplitude of this market are often the longest. The confidence of market investors has recovered, and the volume of transactions has risen sharply. There are often breakthrough signals in traditional charts, such as cracks and gaps. This market trend is very intense, and some graphical barriers are easily broken, especially when breaking through the high point of 1 wave. The fourth wave: The fourth wave is the adjustment wave after the market rose sharply. It usually appears in a complex form and often appears in the trend of "inclined triangle", but the bottom of the fourth wave will not be lower than the top of 1 wave. The 5th Wave: In the stock market, The 5th Wave's rise is usually less than the third wave, and it 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 with excellent performance and large-cap stocks), which is what investors often say. At this point, the market sentiment is quite optimistic. A wave: In A wave, most market investors believe that the rising market has not reversed, but it is only a temporary phenomenon. In fact, the decline of A wave usually has early warning signals in the fifth wave, such as the deviation between trading volume and price trend, or the deviation from technical indicators. However, because the market is still optimistic at this time, A wave sometimes appears flat adjustment or zigzag operation. B wave: the performance of B wave is often a small transaction, which is generally a long escape line. However, because it is a rising market, investors can easily mistake it for another wave, forming a "bull market trap", and many people are trapped in this period. C wave: it is a destructive falling wave, with great strength, great decline, long duration and overall decline. From the above, the wave theory seems quite simple and easy to use. In fact, because every complete rising/falling process includes an eight-wave cycle, there are small cycles in the big cycle and smaller cycles in the small cycle, that is, there are small waves in the big waves and small waves in the small waves. So the number of waves becomes quite complicated and difficult to grasp. In addition, there are often varied and complicated modes in its driving and adjusting waves, such as extended waves.

1, the stock price index rises and falls alternately. 2. Push wave and adjustment wave are the two basic types of price fluctuation. Push wave (that is, wave in line with market trend) can be further divided into five small waves, generally represented by 1 wave, 2 wave, 3 wave, 4 wave and 5 wave, and adjustment wave can also be divided into three small waves, usually represented by A wave, B wave and C wave. 3. After the above eight waves (five ups and three downs) are completed, one cycle is completed and the trend enters the next eight wave cycle. The length of time will not change the wave pattern, because the market will still develop according to its basic pattern. Waves can be elongated or narrowed, but their basic modes remain unchanged. In a word, wave theory can be summarized in one sentence: "eight-wave cycle".

Basic points:

1, a complete cycle includes eight waves, five ups and three downs. 2. Waves can be combined into higher-level waves or divided into lower-level small waves. 3. The waves following the mainstream can be divided into five small waves at a lower level. 4. 1, 3,5, the third wave can't be the shortest wave. 5. If any one of the three extrapolation theories becomes an extended wave, the running time and amplitude of the other two waves will be consistent. 6. The adjustment wave usually runs in the form of three waves. 7. The singular combination of golden ratio is the data base of wave theory. 8. The common vomiting rates were 0.382, 0.5 and 0.6 18. 9. The bottom of the fourth wave cannot be lower than the top of the first wave. Wave theory includes three parts: type, ratio and time, and its importance is arranged in order. 1 1, wave theory mainly reflects the public psychology. The more people participate in the market, the higher its accuracy.