Four basic characteristics of wave theory

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Here are four basic characteristics of wave theory: (1) The rise and fall of the stock index will alternate; (2) The push wave and the adjustment wave are the two most basic forms of price fluctuation. The push wave (that is, the wave that is consistent with the trend of the big market) can be further divided into five small waves, generally expressed as the first wave, the second wave, the third wave, the fourth wave, and the fifth wave. The adjustment wave can also be divided into three small waves, usually expressed as A, B, and C. (3) After the above eight waves (five up and three down), one cycle is completed, and the trend will enter the next eight wave cycle; (4) The length of time will not change the pattern of waves, because the market will still develop according to its basic pattern. Waves can be lengthened or shrunk, but their basic form remains unchanged. In short, the wave theory can be summarized in one sentence: "eight wave cycle"