Basic point 1, futures prices or stock indexes will rise and fall alternately. The scale of the trend is as big as 200 years, as small as a few hours.
2, from the peak to the trough or from the trough to the peak are waves, and all waves can be divided into two types: push (in) waves and adjustment waves. They are the two most basic forms of price fluctuation:
Push waves-waves that conform to the general trend can be subdivided into five small waves, which are respectively represented by 1, 2, 3, 4 and 5. Among them, 1, 3 and 5 waves are low-order propulsion waves in the same direction. The second and fourth waves are lower-order adjustment waves, which are opposite to the forward direction.
Wave modulation-the wavelet at this stage is represented by letters a, b and c.
3. After the eight waves (five ups and three downs) are completed, one cycle will be completed and another eight wave cycle will be entered.
4, the length of time will not change the shape of the wave, the wave can be elongated and contracted, but the basic shape remains the same.
5. The mathematical basis of wave theory is singular (Fibonacci series). Singular numbers are exponential series 1, 1, 2, 3, 5, 8, 13, 2 1 and so on. Its general formula is: an = an- 1+an-2 (see Fibonacci magic number column for details).
6. The adjustment ratio is often 0.382 and 0.6 18 times after a wave of push. The primary goal of a wave propulsion is from the starting point of 1 wave to 3.236 times of 1 wavelength, and the final goal is from the end point of 1 wave to 3.236 times of 1 wavelength; The primary goal of wave adjustment is a wave length that is eight times from the starting point1.6/kloc-0, and the final goal is a wave length that is eight times from the ending point1.6/kloc-0.