Many traders have encountered such dilemmas: they get on board after the golden cross pattern signal appears, only to face a sudden fall; they are eager to sell when the death cross appears, and the result is just a brief pullback; they decisively enter during a breakout, full of expectations for a big pump, only to fall into the trap of false breakouts. Why do these seemingly classic Technical Analysis strategies always seem to be inadequate in actual operations?

The root of the problem lies in the fact that traditional Technical Analysis methods are mainly based on historical data. They have made significant contributions in interpreting past market trends, but often struggle when it comes to predicting current and future market directions. This results in an embarrassing situation where one can speak eloquently during backtesting, yet faces frequent setbacks in actual trading.

In contrast, the Chán theory adopts a different approach. It does not cling to predicting the future, but rather focuses on classifying market conditions. This method is similar to deciding whether to carry an umbrella based on the weather forecast, rather than stubbornly predicting whether it will rain today or not. In trading, this means taking appropriate actions based on specific market trends, and this approach helps maintain a stable mindset, avoiding excessive pursuit of accurately capturing market tops or bottoms.

Another important feature of the Chán Theory is its emphasis on the self-similarity of market trends. Whether in large cycles or small cycles, market structures often exhibit similar patterns. By observing the trends in small cycles, traders can often gain insights into the trends in large cycles. Furthermore, the Chán Theory particularly values real-time assessments of the current market conditions, responding not only after a complete formation occurs but also by continuously adjusting strategies through the analysis of central points, divergences, and other factors during the market evolution.

Overall, the Chande Theory helps traders shift from passive "post-event explanations" to proactive "real-time responses." Traditional Technical Analysis tells you more about how the market has already operated, while the Chande Theory helps you understand what is happening in the market and how you should respond.

In the rapidly changing financial markets, the key is not how perfectly one can explain past trends, but whether one can make the right decisions at critical moments. The value of the Chande theory lies in this point, as it provides traders with a more flexible and adaptable market analysis tool.