What is the Kondratieff Wave also known as?

The Kondratieff Wave, often referred to as the K wave or long wave, is a theory that suggests long-term economic cycles lasting 50 to 60 years. This theory, developed by the Russian economist Nikolai Kondratieff in the 1920s, is based on the observation that economies expand and contract in a wave-like pattern over long periods due to technological innovations and shifts in social structure.

The term "long wave" is particularly appropriate because it emphasizes the extended duration of these cycles compared to shorter economic fluctuations, such as business cycles that may last a few years. The K wave encompasses broader and more profound economic trends, including periods of economic growth, stagnation, and decline, often associated with major technological revolutions and changes in societal organization.

Understanding this concept is essential for market technicians, as recognizing these long-term trends can provide insights into the overall market environment and inform investment strategies accordingly.