Cryptocurrency Exchange - Key to Learning Chan Zhong Shuo Chan's Technical Analysis Theory

Those support and resistance levels, channel lines, third waves, and similar concepts are only useful tools for manipulators to create deceptive signals.

If you truly understand the theory of this ID, you will find that all phenomena described in other technical analysis can be explained within this ID’s framework, and corresponding boundaries for their validity can also be provided. For example, after a stock is newly listed and drops directly in five waves, then reverses to rise in five waves forming a V-shape, wave theory cannot explain this, but using the central theorem of the Chan Zhong Shuo Zen trend center, it becomes an easy problem to solve. These theories standardize complex trends into fixed patterns, just like how the face-claim claims that love without a condom is not love—ridiculous. For manipulators, they have long studied the so-called technical analysis theories better than anyone else. Anyone who has been a manipulator knows that technical charts are used to deceive; the more classic the pattern, the more it can deceive.

But any manipulator cannot escape the most fundamental elements discussed in this ID’s analysis (note: the trend center, levels as the basis for trends and consolidations), because these are inherently “not to be feared” by the market. As long as they are part of the market, manipulators are no exception. Just like any great savior, they cannot escape birth, aging, illness, and death.

It is necessary to emphasize here that the technical analysis system in this ID’s theory is only one of three independent systems. The most fundamental is the mathematical validity guaranteed by the probability principles underlying these three independent systems. The reason why the technical analysis system is important is because, for a retail investor with no inside information, it provides the fairest and easiest-to-obtain information. Technical trends are fully public, first-hand, and direct for anyone. There are no secrets or priorities involved.

The greatness of technical analysis lies in the fact that, using these most direct and publicly available data, one can obtain a reliable basis for operation. Mastery of technical analysis combined with reasonable capital management can effectively and sustainably outperform the market over the long term. For ordinary investors, if you want to genuinely participate in the market, this is the most reliable foundation.

This ID believes that if you only want to make some money, there is no need to learn technical analysis. In a bull market, simply buying funds—especially index-related funds—can at least keep pace with the index’s gains. But the market is not just for making money; it is also the best place to cultivate oneself. Human greed, fear, and stupidity are most prevalent here. The capital market is constantly playing out these emotions. Cultivating oneself in this big melting pot is the greatest benefit of the market. Beating the market is actually about conquering your own greed, fear, and stupidity. This ID’s theory just exposes the market to you, but exposing oneself does not mean conquering oneself; the same logic applies to the market.

If you do not act, you cannot conquer the market. For the market, action is everything. The ultimate purpose of technical analysis is not to predict what the market will do, but to understand what the market is doing right now—an intuitive grasp of the present. All errors in the market stem from deviating from this immediate intuition, replacing it with imagination or emotion. For example, how many people are still resentful about the rise of ICBC but cannot accept the most direct fact of the present? Repeatedly emphasizing that in a bull market, the first wave of rise is driven by component stocks—if ICBC, the largest component stock, does not rise, then who will? In the 1996 bull market, the largest component was Development, which was even more impressive than now. What is ICBC compared to that?

Markets follow certain rules, but these rules are not obvious; they require rigorous analysis to uncover. More importantly, market rules are dynamic. They manifest under the combined influence of different levels. Attempting to predict or grasp these rules with simple indicators, waves, patterns, cycles, etc., is bound to be full of errors. However, as long as you can accurately grasp and skillfully apply these dynamic rules in the present, follow the market’s rhythm, it is not impossible to succeed.

Finally, an assignment: In the so-called wave theory, there is a conclusion that roughly states that the correction of the fourth wave generally occurs within the range of the third wave’s fourth sub-wave. Using the relevant theorem of the trend center in Chan Zhong Shuo Zen, analyze the scope and limitations of this conclusion, and provide a more reasonable theoretical analysis and practical operation guidelines for similar trends.

(Note: Previous theorems have inferred that a five-wave rise indicates the end of an uptrend, with subsequent declines and consolidations. If it is a consolidation, it completes within the first three waves and the fourth. If it is a decline, there must be a third sell-off; it cannot occur within the wave 4 center range. In that case, this wave theory conclusion becomes invalid. **$IKA **$TREE **$A2Z **)