All trends at any level can be decomposed into two categories: trends and consolidations, with trends further divided into upward and downward trends. This conclusion is not derived from the sky, but summarized from the analysis of countless patterns, just as the 'Analects' says, 'When we see men of worth, we should think of equaling them; when we see men of a contrary character, we should turn inwards and examine ourselves.' (Please refer to the corresponding series of explanations under this ID) This simple experience derived from actual patterns is the only solid foundation for all technical analysis theories. This foundation is known to everyone who comes into contact with technical analysis, but unfortunately, no one delves deeper into it, instead getting lost in technical indicators, trading systems, and so on. Imagine, if the foundation is not clear, what can be built upon it? With a solid foundation, technical indicators, trading systems, and the like are all child's play.
From the above, we can obtain the basic principle of 'Chan Zhong Shuo Chan Technical Analysis I': any trend type at any level will eventually be completed. In simpler terms, the following sentence is 'Trend ends perfectly.' The importance of this principle lies in transforming the summarized, difficult to apply, static 'all levels of trends can be decomposed into trends and consolidations' into dynamic, practical 'trend types will eventually be completed,' which is the wisdom mentioned in the Analects: 'All levels of trends can be decomposed into trends and consolidations' is 'non-suffering,' is without hierarchy, while 'trend types will eventually be completed' and 'trend ends perfectly' are based on the non-suffering and hierarchical nature of 'all levels of trends can be decomposed into trends and consolidations,' and 'suffering.'
Because in actual operation, facing is always fresh and current, and as the Analects says, 'Those who are knowledgeable and virtuous are rare!' one must face this current, fresh reality in order to create. In any current trend, whether it is consolidation or a trend, there is always a dilemma: whether to continue or change. For example, in a trend, whether to continue the trend or change it to the opposite trend or consolidation, this issue is always 'unsolvable' at the current level, without precedence. Anyone claiming to solve this dilemma is as ineffective as claiming not to be affected by gravity on Earth, which is something that anyone facing technical charts must always remember. However, this unsolvable 'unsolvable' dilemma, under the 'unsolvable' of 'all levels of trends can be broken down into trends and consolidations,' becomes its 'unsolvable,' and can therefore be ranked (for an understanding of this issue, refer to the explanation of the Analects related chapters by this ID). Because the current trend is a dilemma, that is, in the dynamic process from imperfection to perfection, this forms the basis of its 'unsolvable' and ranking. 'Trends end in perfection,' and trends can be broken down into trends and consolidations 'unsolvable,' in other words, 'trends end in perfection, consolidations also end in perfection'.
The phrase 'The trend is perfect in the end' has two inseparable aspects: any trend, whether it is a trend or consolidation, must eventually be completed on the chart. On the other hand, once a certain type of trend is completed, it will transform into other types of trends, which is the 'unworried' and has its own position. In technical analysis, different positions constitute different types of trends, and all positions are without position. How to flexibly move between different positions is the most difficult part of practical operation and one of the core issues in technical analysis.