Wave theory wave counting skills

Among the many chart theories, the wave theory can be said to be the most profound and profound, with the widest coverage and the most difficult theory. In addition to predicting the short-term corner market, it also has a certain degree of grasp of the medium-, long-term, or even the most long-term market trends. Since the wave theory is easy to learn but difficult to master, more and more people are using it; but to fully understand this theory, it requires a long period of practice. What I will share with you below is the wave theory technique of counting waves.

1. Basic rules of wave theory:

Price fluctuations can be divided into two categories according to their nature, called impulsive waves and corrective waves. Impulsive waves have a five-wave structure, and corrective waves have a three-wave structure.

2. The core of the wave theory:

1. Three tenets:

a. The third wave cannot be the shortest.

b. The first and fourth waves cannot overlap.

c. The second wave callback cannot be lower than the starting point of the first wave.

2. Four creeds:

a. The second and fourth waves generally appear in different forms (if the second wave appears in a complex form, the fourth wave generally appears in a simple form) . b The second wave generally does not appear in a triangle shape.

c. Four-wave callbacks often terminate within the range of the lower four-wave (referring to the fourth small wave of three waves).

D. Forms that meet the conditions of impulsive waves cannot be counted as corrective waves.

3. Two additional points:

1. The knowledge structure of wave theory can be divided into three parts according to its importance:

a. The structure of waves ; b. The proportional relationship between waves; c. Time. Time in the third place is a flaw of the wave theory, so the wave theory must be used in conjunction with the cycle theory and dynamic system.

2. The amplitude of the wave can be lengthened or shortened, but the basic structure remains unchanged.

3. Wave counting skills:

a. Under the qualitative guidance of higher-level waves, count the lower-level wave structures.

b. Use the structure of lower-level waves to verify the qualitative correctness of higher-level waves.

c. Wave theory is art, and wave counting plan is natural and harmonious.

4. The basic structure and classification of waves:

The wave structure is divided into nine levels according to its level. Five sub-waves with a five-wave structure constitute a higher-level impulsive wave, and three sub-waves with a three-wave structure constitute a higher-level corrective wave.

After seeing this, everyone should know the wave theory and wave counting skills. If you want to know more investment knowledge, please follow us!