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Wave

What is 'Wave'

A pattern of behavior marked by noticeable increases and decreases. Waves can be identified in stock price movements and in consumer behavior. Investors trying to profit from a market trend could be described as "riding a wave".


A large, strong movement by homeowners to replace their existing mortgages with new ones that have better terms is called a refinancing wave.

Explaining 'Wave'

Some technical analysts try to profit from wave patterns in the stock market using the Elliott Wave Theory. This hypothesis says that stock price movements can be predicted because they move in repeating up-and-down patterns called waves that are created by investor psychology. The theory identifies several different types of waves, including motive waves, impulse waves and corrective waves. It is subjective, and not all traders interpret the theory the same way, or agree that it is a successful trading strategy.


Further Reading


How have M&As changed? Evidence from the sixth merger wave
www.tandfonline.com [PDF]
… Suggested Citation. Christopher Freeman, 996. "Long Wave Theory," Books, Edward Elgar Publishing, number 549. Handle: RePEc:elg:eebook:549 … More about this item. Keywords. Economics and Finance; JEL classification …

Quantitative wave model of macro-financeQuantitative wave model of macro-finance
www.sciencedirect.com [PDF]
… Suggested Citation. Christopher Freeman, 996. "Long Wave Theory," Books, Edward Elgar Publishing, number 549. Handle: RePEc:elg:eebook:549 … More about this item. Keywords. Economics and Finance; JEL classification …

Uncertainty of climate policies and implications for economics and finance: An evolutionary economics approachUncertainty of climate policies and implications for economics and finance: An evolutionary economics approach
www.sciencedirect.com [PDF]
… Suggested Citation. Christopher Freeman, 996. "Long Wave Theory," Books, Edward Elgar Publishing, number 549. Handle: RePEc:elg:eebook:549 … More about this item. Keywords. Economics and Finance; JEL classification …

Dodging the glass ceiling? Networks and the new wave of women entrepreneursDodging the glass ceiling? Networks and the new wave of women entrepreneurs
www.tandfonline.com [PDF]
… Suggested Citation. Christopher Freeman, 996. "Long Wave Theory," Books, Edward Elgar Publishing, number 549. Handle: RePEc:elg:eebook:549 … More about this item. Keywords. Economics and Finance; JEL classification …

Student-level finance data: Wave of the future?Student-level finance data: Wave of the future?
www.tandfonline.com [PDF]
… Suggested Citation. Christopher Freeman, 996. "Long Wave Theory," Books, Edward Elgar Publishing, number 549. Handle: RePEc:elg:eebook:549 … More about this item. Keywords. Economics and Finance; JEL classification …

Introduction to Wave Scattering, Localization and Mesoscopic Phenomena.Introduction to Wave Scattering, Localization and Mesoscopic Phenomena.
www.tandfonline.com [PDF]
… Suggested Citation. Christopher Freeman, 996. "Long Wave Theory," Books, Edward Elgar Publishing, number 549. Handle: RePEc:elg:eebook:549 … More about this item. Keywords. Economics and Finance; JEL classification …

Challenges posed by the new wave of farmland investmentChallenges posed by the new wave of farmland investment
www.tandfonline.com [PDF]
… Suggested Citation. Christopher Freeman, 996. "Long Wave Theory," Books, Edward Elgar Publishing, number 549. Handle: RePEc:elg:eebook:549 … More about this item. Keywords. Economics and Finance; JEL classification …

The third wave: Future trends in international educationThe third wave: Future trends in international education
www.emerald.com [PDF]
… Suggested Citation. Christopher Freeman, 996. "Long Wave Theory," Books, Edward Elgar Publishing, number 549. Handle: RePEc:elg:eebook:549 … More about this item. Keywords. Economics and Finance; JEL classification …



Q&A About Wave


How long are Kondratiev waves?

The period of a wave ranges from forty to sixty years.

What can waves be identified in?

Waves can be identified in stock price movements and consumer behavior.

How are investors described when they try to profit from a market trend?

They are described as riding the wave.

What is a wave?

A wave is a pattern of behavior marked by noticeable increases and decreases.

Are there different types of Kondratiev waves?

Yes, there are different types.

What does refinancing mean?

Refinancing means replacing an existing mortgage with one that has better terms.

What do the cycles consist of?

Cycles consist of alternating intervals of high sectoral growth and intervals of relatively slow growth.

Who was Nikolai Kondratiev?

Nikolai Kondratiev was the first to bring these observations to international attention in his book "The Major Economic Cycles" (1925) alongside other works written in the same decade.

What is a Kondratiev wave?

A Kondratiev wave is a cycle-like phenomenon in the modern world economy.

What does technical analysis mean?

Technical Analysis refers to the use of mathematical formulas, charts, or tables to analyze financial data about stocks, bonds, futures contracts or other securities for the purpose of making investment decisions based on current trends rather than fundamental factors such as earnings or cash flow. Technical analysts believe that historical patterns will repeat themselves over time and therefore these patterns can be used to predict future prices and trade accordingly. This approach contrasts with fundamental analysis which relies on analyzing economic data about companies' performance in order to make investment decisions based on expected future performance instead of past performance (i.e., P/E ratio). The two approaches are often combined into what is called "technical analysis." In this case, technical analysts may use both types of information when making trading decisions. ""

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