Today’s title is a passage said by Master Chan in the original text of Chan Theory “108 Lessons to Teach You How to Trade Stocks”!

What this passage means is that through the scientific and rigorous structure of the Chaos Theory, we can easily make accurate predictions about future trends before the market emerges, thereby guiding us to formulate trading strategies and execute correct trading actions.

Let’s first understand the meaning of Zen Master’s words through yesterday’s community practical chain strategy simple review of the market:

Yesterday morning, this account opened two short positions above 27,000. The logic of opening positions was very clear: 30-minute three sell points combined with the 5-minute fifth downward exit point, and the first, second, and third profit targets were given. The first and second targets of this order were achieved and the profit was taken out.

At 22:35 last night, the price broke a new low again and reached 26544. At 22:51, another brother in the practical chain group accurately prompted to enter the spot to buy the bottom, and the logic of each order opening was very clear. Currently, this order is profitable and held.

The above two are the practical strategies given by the practical chain group yesterday. The strategies are all current, covering both long and short positions, with seamless connection!

Back to the current market analysis:

Let's look at the 4-hour chart first. I have already drawn this chart and analyzed it in detail in my article "Complete Classification after 30-minute Sells" on Tuesday. At that time, it was clearly pointed out that the 4-hour downward line segment has an end expectation and needs to go up for 4 hours, which requires confirmation by the second buy. The current actual market situation, the second buy, that is, the 30-minute second buy, triggered a strong rebound. From the situation that MACD is about to cross the zero axis, it is highly likely to give a space for upward movement. Of course, whether this upward movement is a rebound or a reversal, this account believes that it should only be regarded as a rebound. After the rebound, there will be a more violent decline!

The trend of the 30-minute chart is just as it was deduced on Tuesday. At that time, it was clearly stated that there was a high probability of turning to the second buy after the third sell. When the volume rebounded after the second buy, the price was close to the upper edge of the center. Those who did not follow the long position last night are not recommended to chase high. At least wait until the buying point appears at the secondary level before getting on the train. There is a high probability that the 30-minute reverse trend type will correspond to the upward segment of the 4-hour level.

Finally, let’s take a look at the short-term 5-minute chart. This chart shows the opening and closing logic of the community’s practical chain group strategy yesterday (closing has logic and basis), perfectly achieving the long-short conversion connection!

After the 5-minute consolidation divergence, the price rose in large volume and directly crossed the center. It is not suitable to chase highs at the moment. Wait for the buying point after the pullback as shown in the above picture before intervening.

The market trends are complex and changing rapidly. The community practice chain and strategy group will remind you of key turning points and buying and selling opportunities in the first time!

The above analysis is for reference only and does not constitute any investment advice!