Eliot's wave theory is one of the most commonly used trend analysis tools. Group psychology is an important basis of this theory, and it is difficult for a light trading market to play its role. Wave theory is a master of technical analysis Ralph? Nelson? An analytical tool invented by R.N.Elliott is different from other technical methods that follow the trend. Wave theory can predict when the trend will end when it is established, and it is the best forecasting tool at present. R.N. Elliott, the founder of wave theory, put forward that the behavior of society and human beings is a cognitive model in a sense. Eliot used the Dow Jones Industrial Average (DJIA) as a research tool and found that the structural pattern of discontinuous stock prices reflected the beauty of natural harmony. According to this discovery, he put forward a set of relevant market analysis theories, and extracted thirteen forms or waves of the market, which appear repeatedly in the market, but the time interval and amplitude of their appearance are not necessarily reproducible. Later, he found that these structural patterns can be connected to form a larger pattern of the same type. In this way, a series of authoritative translation rules are put forward to explain the behavior of the market, with special emphasis on the predictive value of the fluctuation principle, which is Eliot's famous fluctuation theory. Wave theory is a tool with special value, which is reflected in its universality and accuracy. To say that it is universal means that we can apply it to many fields related to human activities, which is incredible in many cases.

On the essence of wave theory, Liu Huilun's Binary Trading Law is a classic of China's wave theory. Interested netizens can learn about it.