1. Understanding the K-line cycle
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1. Cycle formation
(1) K-line is a concept of price space, which is the price change trend, range, rise and fall status and energy strength of the trading object within a specific period of time
(2) Any time period can be used as a K-line time cycle unit, which is also the basic premise of the existence of K-line
2. Cycle transmission and influence
(1) The large cycle level trend evolves from the small level trend
(2) The small cycle trend is the influencing factor of the large cycle trend
(3) After the large cycle trend is formed, the overall trend of the small cycle fluctuation must obey the large trend
3. Three-cycle principle
(1) The trading core of the cycle theory: follow the big trend and go against the small trend
(2 ) Cycle framework classification: the entire cycle is divided into three cycles: large, medium and small
(3) Cycle application
-When the large and small cycles rise (fall) at the same time, the medium cycle moving average reaches the support and pressure level, which is a single signal
-When the large and small cycles are reversed, wait patiently
-When the large and small cycles rise (fall) at the same time, a top and bottom divergence signal appears in the medium term, hold but do not chase
4. Cycle selection in different markets
(1) The three-cycle principle is in a similar multiple relationship: for example, they are in a 4-fold relationship with each other
(2) Three-cycle selection (example)
-Large cycle: hourly line
-Medium cycle: 15-minute line
-Small cycle: 5-minute line
(3) In principle, the choice of the medium cycle should be able to support your selling behavior. The more flexible the market connection, the more flexible the cycle selection