The formula of wave theory is:
Five liters and three drops, complete form;
Eight-wave cycle, cycle after cycle;
Waves can be merged or expanded;
The main wave pushes forward and adjusts back to the original potential;
The waves fluctuate and appear regularly.
The following are 42 charts, each showing a complete eight-wave period:
1. Fully rising waves: five waves rising, three waves adjusting.
2. Adjustment wave: A-B-C three-wave adjustment.
3. Push waves: Five waves push, and the third wave extends.
4. Inclined triangle adjustment wave: A-B-C three waves, in which B wave is inclined triangle.
5. contraction triangle adjustment wave: A-B-C three waves, of which b wave is contraction triangle.
6. Diffusion triangle adjustment wave: A-B-C three waves, in which C wave is diffusion triangle.
7. sawtooth adjustment wave: A-B-C three waves, of which c wave is sawtooth.
8. Platform-type adjustment wave: A-B-C three waves, of which B wave is platform-type.
9. Double triple wave adjustment: A-B-C triple wave, in which B wave consists of three wavelets.
10. Triple three-wave adjustment: A-B-C three waves, in which B wave is composed of three wavelets and C wave is also composed of three wavelets.
(Thirty-two figures are omitted below)
The core view of wave theory is that the market price trend will appear wave shape repeatedly, which has certain regularity and predictability. By studying these models, traders can better grasp the market trends, thus improving the level of investment decision-making. However, it should be noted that wave theory is not omnipotent and has its limitations. In practical application, traders need to combine other analytical tools, such as fundamental analysis, trend line and moving average, to improve the success rate of investment.