1. The rise and fall of stock price index will be carried out alternately. Pushing waves and adjusting waves are the two most basic ways of price fluctuation.

2. The push wave is composed of five rising waves, that is, the five-wave rising mode. In the market, the price is in a specific five-wave form, in which the first, third and fifth waves are rising waves, while the second and fourth waves are reverse adjustments to the first and third waves.

3. The adjustment wave consists of three waves, A, B and C, that is, the three-wave adjustment mode. After the operation of the Five Waves Rising, there will be three waves, A, B and C, to adjust the Five Waves Rising, in which the A and C waves are falling waves. B wave is a rebound wave.

4. A complete cycle consists of five rising waves and three adjusting waves, which is the so-called eight-wave cycle.

5. The first wave has two forms, one belongs to the bottom of the building, and the other is the rising form; The second wave sometimes has a large adjustment range and an amazing decline; The third wave is usually the most explosive and has the longest running time and amplitude; The fourth wave often appears in a more complex form, and the situation of triangle adjustment is mostly. If the second wave is a simple wave, the four waves are mostly complex waves; If the second wave is complex, the fourth wave is mostly simple. Four waves should not be lower than the top of the first wave. The fifth wave is the last wave in the rise, with different strengths.

6.A waves adjust the rise of the five waves, and the falling intensity varies; B wave is a rebound wave to repair the decline of A wave, and the rising trend is unstable. C wave has a long time and a large amplitude, and it is the most lethal.

The basic sampling data of Eliot's model is based on the Dow Jones index in the United States, which inherently determines the limitations of its application. Perhaps it may be more accurate in the market, but in other stock markets, it must have its limitations and technical defects. The defect of wave theory is that big waves and small waves are not easy to distinguish; Waves have various forms and are difficult to judge. Mainly used to analyze and predict the general trend of the stock market, not suitable for the selection of individual stocks.