Since early 20^(th) century proposed by Ralph Nelson Elliott (1871-1948)- The Wave Theory (1938), it comes to one the main theories of securities technical analysis. Some traders use financial market cycles to predict market trends and trying to apply calculation of human activities can be projected to a certain stage in the future. Surely, the empirical validity of wave theory is still controversial. Although it's still difficult to define how it works in stock market; however, from fundamental analysis and economical information flow, traders could be based on its practical experience and psychological decision-making way to avoid risk and gain from stock market, to master Elliott Wave Principle.