In a certain level of consolidation, or around the oscillation and continuation of a certain level of center, there is no issue of reversal, unless discussing the issue of reversal in the sub-level chart. There are two situations for the reversal of an uptrend: decline and consolidation; there are also two situations for the reversal of a downtrend: rise and consolidation. Reversals have levels, and there is the following theorem regarding the relationship between reversals and divergences:
In the midst of Chan's Zen, the turning theorem: The divergence of a certain level trend will lead to the level extension of the last center of that trend, the consolidation of a larger level of that level, or the counter-trend of a level above that level.
The proof of this theorem is a bit abstract, and I guess most people are not interested. Let's use an example to illustrate, so you can roughly understand the outline of the proof. More importantly, this way, everyone will have a deeper understanding of the trend formation. For example, a 5-minute divergence segment in a downtrend, eventually pinpointed precisely through 1 minute and sub-1 minute levels, can find the exact point of divergence, followed by a rebound. Note that the rebound is just a general term. In the theory of this ID, there is a very clear definition for this rebound, which includes three cases: 1. The last central level of the trend expands, 2. Consolidation at a higher level, 3. A counter-trend at a level above this level.
One, the last level extension of this trend center
When there is a divergence in the trend on the 5-minute timeframe, the pivots within this 5-minute trend are all on the 5-minute timeframe, assuming there are N of them, where N>=2. Considering the situation of the last pivot, after breaking below that pivot, the divergence segment is evidently a trend of less than 1 minute, otherwise it contradicts the premise that the pivot is the last one in a 5-minute trend. The appearance of a first type buying point in this divergence segment leads to a rebound. Clearly, this rebound must touch the DD=min(dn) of the last pivot, which is the lowest point around which the pivot oscillates. If the rebound fails to touch even this point, it means that at least one new 5-minute pivot is formed below, contradicting the fact that the upper pivot is the last one. This type of rebound that only touches the DD=min(dn) of the last pivot is the weakest rebound after the divergence. This rebound will transform the last pivot into an expansion on a higher level, for example, expanding a 5-minute pivot into a 30-minute or even larger pivot.
As mentioned earlier, the first type of buying point is absolutely safe. Even with such a low-level rebound, there is enough room for profit, and generally, this situation occurs very rarely, it is very special. However, theoretically, it should be completely accurate, not missing any situation. If unfortunately encountering this situation, under the requirement of capital utilization rate, of course, you should find an opportunity to exit immediately, otherwise, it will be a waste of time.
Note that this situation is different from the transformation of consolidation divergence into the third type of selling point. In that case, the level of the rebound must be lower than the last center, while in this case, the level of the rebound must be equal to or greater than the last center. Therefore, these two situations are not difficult to distinguish.
二、The consolidation of a larger level, 三、The counter-trend of a level above this level.
These two situations are the two situations where a reversal occurs, the principle is the same, only the corresponding intensity is different. When rebounding, at least re-touch the last central point, a reversal will occur, that is, there will be consolidation and upward movement. For the example of a 5-minute decline mentioned above, it means that there will be a larger consolidation at the 5-minute level or an upward movement above the 5-minute level. There are two situations when connecting two trend types: decline + consolidation, or decline + upward movement. Note that the central level of consolidation here must be greater than the central level of decline, otherwise it will be confused with the extension of the decline or the level expansion of the last central point of the first trend. The central point of the upward movement is not necessarily greater than the central point of the downward movement. For example, a 5-minute decline followed by a 5-minute upward movement is very normal, but if it is consolidation, it must be at least at the 30-minute level.
Some people always can't figure out why the central level of consolidation in 'decline + consolidation' must be greater than the central level in decline. Let's use an example to explain: for instance, in a 5-minute decline, there are at least two central levels. The most common scenario in the entire decline is a+A+b+B+c, where a\b\c are at most 1-minute levels, or even in the most extreme case, just a gap. However, A and B, being central levels at the 5-minute level, are composed of at least 3 segments of 1-minute trend types. If all are measured by 1-minute trend types, and let's assume a\b\c are all 1-minute trend types, then a+A+b+B+c would have 9 1-minute trend types.
And a 30-minute consolidation, there are at least 3 types of 5-minute trends, and 1 type of 5-minute trend has at least 3 types of 1-minute trends, so a 30-minute consolidation has at least 9 types of 1-minute trends, which is consistent with the quantity of a+A+b+B+c above. From the perspective of this quantity balance, we know why the level of consolidation in 'decline + consolidation' must be greater than the level of decline. If the levels are the same, for example, a 5-minute consolidation with only 3 types of 1-minute trends is far from 9, and does not match. Of course, the main reason why the level of consolidation in 'decline + consolidation' must be greater than the level of decline is not this, but as mentioned above, if the levels are the same, there are only two possibilities: the decline extends or the last pivot of the decline expands, which is not compatible with 'decline + consolidation'.
Some may still have questions. What is the difference if the last central expansion of a decline, for example, expands from 5 minutes to 30 minutes, compared to a decline at the 5-minute level + consolidation at the 30-minute level? The difference is significant because in a '5-minute level decline + 30-minute level consolidation,' both the decline and consolidation are completed trend types, meaning they are the connection of two trend types. On the other hand, the last central expansion of a decline is a continuation of an unfinished trend type within the same trend type. For example, in the sequence a+A+b+B+c, if B+c experiences central expansion from 5 minutes to 30 minutes, then a+A+b represents a 5-minute trend type, denoted as a~, and the central expansion of B+c is denoted as A~. The entire trend is then represented as a~+ A~, and subsequent trends can continue to evolve, forming a~+A~+b~+B~+c~, expanding into a 30-minute level decline. Of course, there can be other evolutions, but the completion of trend types is necessary, which is evidently different from the 'decline + consolidation' scenario.
The theory of this ID is the most accurate analysis of market trends. It is necessary to have a clear understanding of all situations in order to have a precise grasp of the market trends. If this ID publishes this theory, the title of the book could be 'Mathematical Principles of Market Philosophy' because the rigor and significance of this ID's theory to the market is no less than Newton's significance to physics. This point must be gradually understood. Furthermore, this ID's theory is based on pure mathematical reasoning, completely avoiding the possibility of occurrences like Einstein's overturning of Newton. Without understanding this point, it is impossible to truly understand this ID's theory, and one may 'study without reaching, fearing to lose it.'
The three situations above completely classify the level and strength after the backswing of a certain level, that is, what will happen after the first type of buying point at a certain level, and the situation of the first type of selling point is the same, just in the opposite direction. Note that this is the most accurate situation. Since the first situation rarely occurs and is somewhat similar to the second situation, it can roughly be said that a backswing implies consolidation and a counter-trend. So, how to distinguish these situations? The key is to look at the sub-trend of the last central level of the first rebound in the rebound (for example, if the previous decline is at the 5-minute level, look at the first rebound at the 1-minute level) to see if it retraces back into the last central level. If not, then the first situation is likely, and it also proves that the strength of the rebound is questionable. Of course, this judgment is not absolute, but it is highly effective.
For example, in the rebound on 20070206, using a 5-minute divergence segment, then examining divergences at 1 minute and below levels for precise positioning can accurately grasp the bottom. In practice, many people have grasped it according to the theory of this ID. Subsequently, the rebound, the first wave immediately returned to the last center of the 5-minute decline starting from 2980, which means that the first weakest possibility can be completely ruled out. Afterwards, the 1-minute trend continued to complete, expanding into a 5-minute uptrend. Around 11:00 on 20070207, a 1-minute divergence created the end of the uptrend, followed by entering a range of oscillation of a center. According to the theorem of this chapter, this center can be asserted to be at least at the 5-minute level, and in fact evolved into a 30-minute level. This means that the possibility of a rapid 5-minute uptrend is gone, and there are only two possible evolutions ahead: a consolidation above the 30-minute level, or an uptrend above the 30-minute level. As for which scenario, it must be determined by the evolution of the subsequent trend.
As for the actual operation, there is not much difference between these two situations, such as consolidation or rise. The key is to see if the third type of buying point is formed after breaking through the first center. In operation, buy at the first and second type of buying points first, then observe if the third type of buying point appears. If it does, continue to hold; otherwise, you can sell. Therefore, in operation, it will not cause any difficulties. Of course, if the amount of funds is particularly small, or the theoretical level of this ID is only at the level of elementary school graduation, you can completely sell when there is a divergence in the secondary trend after the breakthrough, then see if a third type of buying point is formed upon retesting. If it is formed, buy back; if not, do not buy back. It's that simple. Of course, to reach this level, you must first graduate from elementary school in the theory of this ID. Otherwise, you will not be able to distinguish the relationship between consolidation divergence and the transformation of the third type of buying point. How could you operate? Moreover, this kind of operation must be repeatedly viewed and practiced to become proficient. Of course, if you truly become proficient, except for those who have also graduated from elementary school with this ID, hardly anyone will be your opponent.
So, in actual operation, how can we achieve the highest efficiency. One method that can be guaranteed by theory is: when bottom fishing for the first time, it is best to buy those with the largest amplitude of DD=min(dn) from the current position to the last central DD=min(dn), which is the so-called oversold condition. Because the theorem of this chapter guarantees that the rebound will definitely reach above DD=min(dn), and then sell after the first wave of rebound secondary level divergence. If this position still cannot reach the last central, then this stock can basically be ignored, of course, there may be exceptions, but the possibility is very small. Then buy those stocks that can reach the last central during the first secondary level retracement of the rebound and preferably break through and stand firm after the retracement. According to the trend, there must be a perfect secondary upward trend type, if this trend type appears in a consolidation divergence, then you should sell, if it does not appear, then congratulations, you have bought a so-called V-shaped reversal stock, and the subsequent strength will certainly not be small. As for how to predict V-shaped reversals in advance, this is not a problem that can be solved by the theorem of this chapter, it must be solved in future courses.
No plagiarism, offenders will be held accountable
Reply
Only show replies from Chan Shi
2007/2/9 15:09:19
There is nothing much to say about the market today, just oscillating around the emphasized 2720 point. Experienced individuals should recognize this consolidation as a triangle, with today's late sell-off being its 5th segment. Once the triangle is formed, a breakthrough is inevitable, and this is likely to happen early next week. The direction is simple, based on whether 2720 holds or not. If it doesn't hold, there will be a second retest, otherwise, another wave will come. As for whether it holds, it's easy to judge by looking at short-term indicators.
There's nothing to say about individual stocks. Look at the chart yourself to find opportunities. I will inform everyone next week. Stocks like 999, 777 that double and turn negative in cost, how to accumulate more chips while sticking to negative cost, this is the most powerful blood-sucking method, making all market makers and funds tremble in fear.
Chánzhōngshuōchán 2007/2/9 15:33:09
[Anonymous] Luo Guo
2007-02-09 15:16:06
Math sister!!!!!! Be careful of the Zhongshan wolves!!!!!! Kindness will not be repaid!!!!!! Don't think they will really thank you!!!!!! Just watch!!!!!! The theory you mentioned will soon be plagiarized and claimed as their own!!!!!! And then they will even publish books!!!!!! Stop mentioning your theories!!!!!! Don't tell them about stocks!!!!!! If they buy high and lose money, they will blame you!!!!!! They are all bad people!!!!!! You can earn money on your own!!!!!! Make them lose money!!!!!! Drain their blood!!!!!! I won't leave!!!!!! But will always lurk!!!!!! I will become 100 this year!!!!!! I will earn money to marry you!!!!!! Definitely!!!!!!
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This ID is free to come and go here, you can do whatever you want, feel free.
Chánzhōngshuōchán 2007/2/9 15:37:30
Attention everyone
Since everyone is so excited, anyway, it's Friday, everyone can fully vent. This ID is free to come and go, you can do whatever you want, but no spamming, it's not good for everyone.
If everyone is not willing to be quiet, then this ID will have to come back later.
Chánzhōngshuōchán 2007/2/9 15:42:45
Note
This ID just deleted Luo Guo, as well as several posts suspected of repetitive screen swiping, this ID usually never deletes posts, but must delete the screen swiping ones, only keep one, for everyone to look more comfortable.
Chánzhōngshuōchán 2007/2/9 15:44:56
[Anonymous] longs
2007-02-09 15:09:50 Boss, do you like to grab the building now, hehe
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No, you have to watch the daily market analysis to see it, otherwise it will be difficult to find it all at once.
Chánzhōngshuōchán 2007/2/9 15:47:38
Little Hu Little Dance
2007-02-09 15:09:59 OP, now watching the 'Analects' series, it is well written and has knowledge in it. You mentioned at the beginning that it is easy to misinterpret the overall idea of the 'Analects' if not grasped properly. While clearing up these misinterpretations, you have dedicated a lot of space to explaining the 'characters,' which not only clears up those misinterpretations but also eloquently and coherently elaborates on the 'Analects,' leaving people impressed. I have a small question, did you first delve into ancient characters before studying the 'Analects,' or did you study both the 'Analects' and ancient characters simultaneously? This question is somewhat like the 'chicken or the egg' type, but it seems that once you formed an overall sense of the 'Analects,' the 'characters' within it didn't easily 'confuse' you, which in turn further confirms your overall sense. These two processes complement each other, but there must have been one that started earlier, right? I really hope you can write another series on how to study Chinese classics... If it could be done step by step like the current stock series, that would be even better... Also, OP, when will your detailed explanation of the 'Analects' be published? Right now, I find it more interesting than stocks; stocks can only be taken slowly, impatience won't help...
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Your thoughts must be higher than the Analects in order to annotate the Analects. Otherwise, you won't even understand it yourself. At most, it's just a dialogue. How could you possibly explain it well? Characters and sentences are actually the least important things.
Chánzhōngshuōchán 2007/2/9 15:53:44
[Anonymous] Listen to Chan Shi
2007-02-09 15:46:39 I've been here for a while and gained a lot, thank you 'leading sister'. Of course, your age here is definitely not that of a big sister, but your knowledge is absolutely qualified, and you are at the forefront. I know that people like you are a kind of 'smart person', extremely intelligent, and have a wide range of knowledge. The so-called Zen of all things is a trick that the vast majority of people find it difficult to comprehend. Here, listening to you explain the true meaning and Zen of all things 'entanglement' is also a kind of enjoyment and refinement. I really want to know your evaluation of 'He Xin'.
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What, a scholar who is passable, but far from a true sage, and even from the perspective of a scholar, he is far from being able to integrate both Eastern and Western, high and low. Of course, their generation had deficiencies at the foundation, and some things require opportunity.
Chánzhōngshuōchán 2007/2/9 16:01:08
[Anonymous] stone
2007-02-09 15:17:50 Can LZ analyze the trend of 600050 China Unicom?
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Short-term, of course, is the world of second and third-tier cities. China Unicom needs a significant boost, there must be new stimuli, otherwise it will just be a central shake. Currently, the return of China Mobile is its biggest support. The reason why this ID wants to gradually enter to ambush them is for some personal reasons. This ID has some old acquaintances, and has a deep historical connection with China Unicom, stationed there for a long time, probably with around 10 billion funds, that was the number over a year ago, it should be more now. The so-called old acquaintances are old opponents, had a round with them some time ago, this time continuing to play games with them, let's ambush them a bit, forget about the retail investors.
'Chan in the Wrappings Talks of Zen 2007/2/9 16:03:01 '
[Anonymous] ccy
2007-02-09 15:17:17 ccy 2007-02-09 08:47:16 But the real gentleman, not only should be free from mud and not stained, but also should go through fire and water, in the evil world and among evil people, 'see, hear, learn, and act' the 'way of the sage', without this, there is no way to achieve true non-retreat, nor to transform the world of 'people do not know' into a world of 'people do not resent'. ' =================== Birds of a feather flock together, people are divided into groups, gentlemen and villains find it difficult to 'associate' or 'not deeply associate', where does 'not move' come from, so in reality, true gentlemen are very few.
Is this how Chan Nv is!!
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Don't criticize others before examining your own shortcomings.
Chan in the Wrappings Talks of Zen 2007/2/9 16:04:48
[Anonymous] Stand by and do nothing
2007-02-09 15:30:20 The first wave is the 1-minute trend immediately returning to the last center of the 5-minute decline starting from 2980, which means that the first and weakest possibility can be completely ruled out.
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Is it enough to just touch the fluctuating edge around the last central point? Or is it necessary to strictly enter the central range?
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The weakest is just touching the edge, of course, this situation rarely occurs, as clearly stated in the article.
'Chan in the Wrappings Talks of Zen 2007/2/9 16:06:36 '
[Anonymous] Bar Mood
2007-02-09 15:33:22 First, let's give a shoutout to the squad leader... You've already fallen in love, huh... Haha... First, make sure to study the Analects well.
Say hello to JJ again.
About 600130. On the 30-minute chart, only consolidation can be seen. The only opportunity is to use consolidation as a backing. On the daily chart, I think it's similar to the overall market, also entering a triangle area. It is now in the fifth segment. I think the fourth segment did not fall below the high point of the first segment, so I believe it will continue to rise! I don't know what guidance JJ has, I have posted N articles, but have not received any replies....
Outperforms the broader market. No problem in the medium term.
Chánzhōngshuōchán 2007/2/9 16:10:20
[Anonymous] Passerby
2007-02-09 15:37:30 Chan sister, can you analyze 601398 for me? Has it completed the first stage? You once said that the trend of 601398 can represent the trend of the first stage of a bull market. Has it ended?
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Now we are dealing with second and third-tier stocks, and the first round of the bull market is still far away. When this ID mentions the first round, it is a general concept. To be precise, after the first round ends, the market will experience a quarterly level adjustment, which is still far away. This bull market is still in its early stages.
Chánzhōngshuōchán 2007/2/9 16:16:30
[Anonymous] Snail
2007-02-09 15:40:35 Please answer a few times, please ask Teacher Chan to answer, just started learning your theory, so I would like you to analyze the stocks in hand, 000690 and 000858. Is there any problem with holding these two stocks for the long term?
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This ID does not like the so-called long-term concept. If you mean buying at a long-term point and holding until a long-term selling point, then this ID can accept it. Otherwise, it's just an excuse for inadequate skills. Like 000858, a large weekly center, unless you have an immense amount of capital, this level of pullback should at least follow what this ID said, turning into a negative cost before holding long-term, so there is more money to do other things. Of course, if you haven't left, it's fine, but this adjustment will take some time, with repeated ups and downs. As for the long term, of course, no problem, the bull market is still early, almost all decent stocks will eventually be fine and hit new highs.
Chánzhōngshuōchán 2007/2/9 16:20:18
[Anonymous] Stand by and watch
2007-02-09 15:55:07
The central and trend types are mutually defined. A central consists of at least three segments of secondary trend types, and a trend type contains at least one central of that level. By the time it reaches the smallest level, the central on the 1-minute chart becomes relatively vague, just like the second 1-minute central of the lowest segment on the 6th day. At this point, should it be blurred or can the 1-minute central be redefined precisely?
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If you consider 1 minute as the minimum, then the overlapping part of 3 candlesticks is the center of 1 minute, of course, if you consider each transaction as the minimum, that's another story.
Chánzhōngshuōchán 2007/2/9 16:22:29
[Anonymous] Stock Market
2007-02-09 16:01:08 OP, jokingly ask, the highest education standard you currently provide is only elementary school graduation. What is the standard for university education or even doctoral education? Or are your courses still growing and we need to learn step by step? Currently teaching elementary school basic courses? Of course, the basics are the most important.
I admire your judgment on the future bull market in China the most. I wonder if any of the students will graduate with a doctoral degree by 2018. Let's discuss.
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In the future, we will talk about it, so let's lay the foundation first.
Chánzhōngshuōchán 2007/2/9 16:23:34
[Anonymous] YY
2007-02-09 16:16:48 LZ, please ask about the overall market
If the market chooses to move upwards, then it is very likely to form a consolidation divergence on the 30-minute chart?
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It's not certain, it could also evolve into an uptrend. There's no need to predict, just look at the chart and react at that time.
Chánzhōngshuōchán 2007/2/9 16:27:19
Everyone should take some time to study the course material thoroughly, especially this section. There is plenty of time over the weekend, so please allocate some time for it.
But it's better to rest more on the weekend. This ID is signing off, going out to have some fun.
On Sunday morning, there will be a concert. Goodbye.