12345 is the operating mode in an upward wave, 1, 3, and 5 are upward waves, and 2 and 4 are adjustment waves. abc is the operating pattern in a downward wave, a and c are downward waves, and b is an adjustment wave in the middle of the decline.

The abc wave and 12345 wave in the stock market are derived from Elliott's wave theory.

The stock price index will rise and fall alternately; impulsive waves and correction waves are the two most basic types of price fluctuations, and impulsive waves (i.e. waves that are consistent with the trend of the market) can be divided into The five small waves are represented by wave 1, wave 2, wave 3, wave 4, and wave 5. The adjustment wave can also be divided into three small waves, represented by wave A, wave B, and wave C.

After the above eight waves (five up and three down) are completed, a cycle is completed, and the trend will enter the next eight wave cycle; the length of time will not change the shape of the wave, because the market will still Develop according to its basic form. Waves can lengthen or narrow, but their shape remains the same.

Extended information:

Wave principle

1. Corrective wave depth principle

Used to measure the retracement amplitude of corrective waves. It will reach near the low point of wave 4 of the minor level. In a strong market, only make new highs but not new lows. At this time, the low point of the fourth wave of a small level will be a support level, which can be used to follow up and stop the loss.

2. The golden section principle

That is, the volatility ratio presents the golden section ratio. For example: Wave 3 is the 1.618, 2.618... of wave 1; the callback of wave 2 is 0.382, 0.5, 0.618 of wave 1; the callback of wave 4 is 0.382, 0.5 of wave 3; the callback of wave 5 is 0.618 of waves 1 to 3. This principle is also present in time.

Baidu Encyclopedia-Elliott Band Theory