In my previous article, I talked about thesis-antithesis-synthesis, but I missed a question: what are the identifiable characteristics of the synthesis (that is, the new proposition)?

This question is very important because it is related to the turning point of the market. For traders, the most important thing is the turning point.

A synthesis is a new proposition, but at the same time it is a new proposition that lacks real content. It requires a physical event in the real world that has a logical relationship with it to support it.

Therefore, the synthesis is a new proposition in a potential state.

The so-called potential means that some people believe in it, while others do not. On the K-line chart, there are signs of bottom-fishing (pin-ins or significantly increased trading volume), but the price does not reach a new high.

If a new physical event that has a logical relationship with it occurs in the real world next, then the synthesis question in a potential state will officially become a new proposition and will be generally accepted by the market, and a new wave of market conditions will officially start.

From the above description, we can see that when there are signs of bottom-fishing in the market, the synthesis question is generated, and the synthesis question is a potential turning point. If opportunities and conditions appear in the real world at this time to support it, the turning point will take effect; otherwise, the turning point will be invalidated and the price will continue to hit a new low.

Retail investors should first confirm that a combination of problems has occurred (that is, there are signs of bottom-fishing), and then look for new physical events that are logically related to it through media information. If they cannot find it, they should short it. If they find it and the price also reacts (hit a new high), they should directly chase long.

Add: Position Management

Step 1: When the market shows signs of bottom fishing (abnormally increased trading volume), place a long order first.

The second step is to place another order of equal volume when the market rebounds significantly.

The third step is that if the new proposition is confirmed, stop loss for the 🈳️ order in time and continue to hold the long order.

Step 4: If the new proposition cannot be confirmed, stop loss in time for long positions and continue to hold 🈳️ positions.