# Wave theory and the golden mean

Wave the bestforexrebate forexrebatenetworkherits many valuable ideas from Dow theory, thus forming a more accurate analysis theory Dow theory tells us what the sea is, cashback forex What is forex rebate theory tells us how to surf in the sea The origin of wave theory comes from the study of the Dow Jones index, and the Dow theory is also based on the Dow Jones index Then I can use part of the First of all, the larger the Whatisforexrebate volume, the more effective the wave theory is Sometimes I wonder if the wave theory can be applied precisely to all trading varieties? In fact, wave theory, like Dow theory, is based on market indices, and if this analysis is grafted on to individual stocks, then the effect should be greatly reduced. Embodied in the idea of wave theory, rather than the wave theory of the precise (the effect of the latter, the reason is the same) Second, the greater the scale of analysis, the more effective the wave theory according to Dow theory, long-term trends are necessarily determined by fundamental factors; medium-term trends in human factors can only interfere with the trend; and short-term trends can be completely artificially manipulated if the wave theory is a market characteristic If wave theory is a market characteristic, then the less easy to artificially interfere with the scale of the effect should be better in the market downturn in 2005, you only need a few million to be able to influence the trend of each stock with sparse volume, that is, your will is easier than wave theory on the market Finally, the stock market is more effective than the futures market, more effective than the foreign exchange market After all, wave theory is originated in the stock market, which contains numerous characteristics of the stock market Or rather, wave theory takes into account the asymmetry of the stock market with economic growth, which is why the rise will be five waves and the fall will be three waves. Interestingly, from the overall view of the individual waves, they usually also conform to the golden ratio Golden ratio includes, 0.236, 0.382, 0.5, 0.618, 0.764, 1; and their inverse, 4.24, 2.62, 2, 1.618, 1.31 If you take the medium-term fluctuations of the SSE, and the adjacent medium-term If you do a proportional analysis of the fluctuations of the SSE, you will find that they will often coincide If you can divide the SSE into waves, you will find that the proportion of the same waves may also be the same For example, the second wave often adjusts 100% and 76.4% of the magnitude of the first wave, while the fourth wave adjusts 38.2%, 50%, 61.8% of the third wave, and so on If we divide the SSE 94 years 325 points to 2001 If we divide the long-term bull market from 2245 in 2001 to 2245 in 2001 into waves, you will find that the top of wave 1 is at 0.382, the bottom of wave 4 is at 0.382, and the top of wave 3 is at 0.618; if you divide the long-term bear market from 2245 in 2001 to 998 in 2005 into gold, you will also find that the bottom of wave A and the top of wave B are also at the gold level; at the same time The long-term bear market retraced the 61.8% parallel of the long-term bull market: If you connect the low of wave 2 to the low of wave 4 as a trend line, then a parallel line can be drawn along the high of wave 3. For the SSE, if we draw a parallel line from 513 in early 96 to 1047 in 99 and 1510 in 97, then the 2245 point in 2001 is exactly at this line. We can find that the bull market in 96 was more complicated, while the bull market in 97 was very simple; similarly, the bull market in 99 was very simple, while the bull market in 2000 was more complicated after breaking the low of the fourth wave: according to wave theory: the adjustment wave, especially the fourth adjustment wave, ends at the position of the maximum adjustment of the previous From the study of the SSE index, we can also find this interesting phenomenon after 2001 since 2245 points to 998 points of the adjustment can be soberly divided into ABC three waves and the end of the A wave at 1339 points, this point just below the end of 99 points of 1341 points; and the end of the C wave at 998 points, also just below 98 points of 1043 points of which 1341 points for 1043 points to 2245 points of the bulls four-wave retracement low; and 1043 points for 325 points to 2245 points of the big bulls four-wave retracement low sometimes big B-wave rally, but also in the big A-wave fourth sub-wave high point at the end of the SSE index at the end of 2001 out of the big A-wave down in the fourth sub-wave rally, eventually ended with 1776 points after the big B If we then carefully study the internal structure of the waves, we will be able to find the stock market hierarchy theory mentioned later; if we then carefully study the wave pattern, then we will be able to find the deficiencies in the pattern theory and thus find the anti-formation theory mentioned later. In fact, when I look back at the history of the market, I always feel a wonderful feeling brought by wave theory, but I do not deny that this feeling has never appeared in advance here to put forward some common sense of wave theory, interested friends can find some books on wave theory to read, but I still hope that readers do not fall into the strange circle of microscopic wave counting, more understanding of the ideas of wave theory may have better results