Discussion Of The Wave Theory In The Chinese Stock Market

Technical analysis is to regard predicting the future trend that the market price changes as object, regard chart as the study on market behavior of main means. The meaning of market behavior in the stock market is the price, trading volume. Technical analysis undergoes more than 100 years of development, various in style. Can divide into indexes, trend lines, forms, K lines, wave basically. The school of technological analysis understands and considers the security market from different respects, some have quite solid theoretical foundations; some do not have very clear theoretical foundation. This text introduces Dow theory and Eliot Wave Theory, Have carried on the theory to probe into to the theoretical foundation of the wave theory. Have stated the science of division of the wave of theory of wave, thus prove that the wave theory can be used for analyzing and predicting the analysis tool that the market ran. On this basis, put forward this index combines together and analyses the analytical method that the market runs wave between morphological analysis and trading volume rate of change (ROV) of theory, And has carried on the real example to analyze to Index of Shanghai Stock Exchange, in order to prove the dependability of this kind of analytical method.With the analysis and research of the wave theory in this text,we proved that the wave theory is scientifically, Can be used for instructing investors how to carry on investing securities, on more and more normal China's securities market, The wave theory will play a role in guiding to investors of China .