All the methods, logics, and details we mentioned above are preparations for buying and selling points.

Buying and selling points are divided into three categories

The first category: It is actually the beginning of wave 1, which is called 1 buy in the Chaos Theory. It is also the end of the tail end of the adjustment wave divergence. That is, the end position of a period of adjustment trend.

The second category: that is, in our wave theory, the end of the divergence section at the end of the wave 2 adjustment is referred to as the second buy.

The third type: the adjustment wave that occurs after the departure phase after the 2-buy is completed. The wave overview is the end of wave 4.

That is to say, you can enter the market after the second center is built. It is referred to as 3 buy or.

If you look at the graph upside down, it means 1 sell, 2 sell, 3 sell

The buying and selling points are the objective basis for all transactions. At the same time, the buying and selling points follow the positions in the chart to determine the timing.

Most of the buying and selling points are established by the top and bottom patterns caused by divergence. The emergence of buying and selling points means the end of the previous trend.

Trading principles: Buy at the buy point and sell at the sell point

In the traditional Chaos Theory, there are 2-3 buys at the same position and a secondary 2 buy position. I simplify it here to the 123 buy structure type and the disappearing 3 buy (the disappearing 3 buy means that the upward trend does not constitute a driving force, but an ABC trend type)

The buying and selling points are basically explained here. Next, let me talk about the concept of range trading.

In the process of looking for buying and selling points, if the 1 buying position we assume is a daily pen, then how can we find the end of the daily line and maintain it while buying?

This requires the concept of interval sets.

At the daily level, we assume that the position of buying 1 is in the wave 5 of the previous level. Wave 5 is the daily line. We need to find the 5-5 wave at the 4-hour level. At the same time, we need to find the 5-5-5 wave structure at the hourly level in a deeper level. Generally speaking, I think it is OK to find the hourly level. After all, the level is the daily line. You can also find the end of other levels to find the position of buying 1.

By the same token, you can understand the other buying points in the range, right?

As shown in the figure:

The next section will discuss the theory of destiny by birth and some strange trend types, which are just miscellaneous topics. Basically, the theoretical knowledge ends here.

Welcome everyone to watch and see you.