The Way of Trading · General Outline | Original First Release of the Dao Version

Late at night, unable to sleep, pondering the Dao.
Years of entering the market, experiencing the rise and fall, tasting the confusion of trading, reviewing day and night, exhausting efforts, discarding complicated indicator routines, integrating natural Dao principles with practical rules, pouring heart and soul into it, finally forming this complete trading system.
Uniquely created across the entire network, the only one of its kind in the world.
The Way of Trading, abbreviated — Yi Dao.
Yi is the natural law of market fluctuations, the cycle of rise and fall, ever-changing but never departing from its essence;
Dao is the proper path for traders to guard their hearts and establish themselves, to follow the trend and endure.
This system progresses from zero to the ten directions, with eleven levels of stages, each step advancing and interconnected.
Each part can be independently formed into a system, independently practical, and stand alone;
Fusion and integration form a complete closed loop, encompassing all phenomena — Yi Dao.
Once the system is initially formed, its character is set, and I will continue to refine and improve it, making this fundamental Dao more perfect and transparent, guiding more lost traders.
Zero Extreme · Chaos and the Origin
When the market has not yet begun, the bulls and bears are not distinguished, all phenomena are chaotic.
Let go of predictions and obsessions, clear emotions and gains/losses, observe quietly, wait patiently for trends to naturally emerge — this is the foundation of trading, the beginning of understanding the Dao.
One Yuan · Calm the Heart and Keep Discipline
Trading begins with cultivating the heart; all techniques are rooted in the mind.
Resist greed and fear, eliminate emotional trading, avoid going against the trend, avoid holding positions blindly, avoid opening trades impulsively.
Do not act without signals, do not exit unless the structure is broken, close positions when the market is chaotic.
A calm mind stabilizes the market, only by keeping discipline can one endure long-term.
Two Forms · Yin and Yang Divide the Trend
One Yin, one Yang, determine the market’s major trend.
Yang for bullish: higher highs, higher lows, trade long in the trend;
Yin for bearish: lower highs, lower lows, trade short in the trend;
Yin and Yang intertwined, indicating oscillation, avoid chasing the trend, avoid heavy positions.
Identify Yin and Yang, follow the trend — this is the core of trading.
Three Talents · Timing, Geography, and Harmony
To achieve steady profits, three talents must be present.
Timing: cycle resonance, trend reversal windows, rhythm of time;
Geography: key support and resistance, safe trading zones, precise price levels;
Harmony: capital capacity, market liquidity, consensus of bulls and bears.
Only with all three talents can one hold heavy positions; missing one, observe; missing two, do not act.
Four Symbols · Seasons to Identify Strength and Weakness
Use the four symbols to observe the market, and the four seasons to identify strength and weakness.
Young Yang · Spring: low open, rising to stop the fall, bottoming out and sprouting;
Great Yang · Summer: high open, strong upward movement, trend at its peak;
Young Yin · Autumn: high open, falling back, losing momentum, trend weakening;
Great Yin · Winter: low open, falling further, dominated by bears, extremely weak decline.
One glance to know strength and weakness, act with measure.
Five Elements · Cyclical Phases
Market trends cycle through five states:
Earth: consolidation and accumulation, forming bottoms and tops;
Fire: bulls lead the rise, follow the trend to hold positions;
Metal: upward retracement, structure intact;
Wood: weak rebound, quick in and out;
Water: bears dominate, decline without bottoming.
Follow the phases, do not oppose the cycle.
Six Harmonies · Six Lines of the Cycle to Define Boundaries
Six Harmonies, taking the six natural horizontal lines from the higher-level cycle, forming a space system, naturally dividing support and resistance, no subjective drawing needed.
Includes: opening price, closing price, highest price, lowest price, high-mid-low prices, open-close-mid prices.
Prices above the six lines are strong; below, weak; intersections are the centers of bulls and bears; trade only within safe zones.
Seven Stars · Naked K-Line for Turning Points
Seven classic reversal candlestick patterns, no reliance on indicators, visually distinguish tops and bottoms.
Low positions: stopping the fall, bottom reversal, bullish continuation;
High positions: stagnation, top warning, main force harvesting, trend reversal.
Just by observing the shape, know the turning point, precisely grasp the timing of trend change.
Eight Trigrams · Trend Framework
Eight major structures encompass all market movements, supporting the overall trend:
Qian (Heaven) — Bullish, Kan (Water) — Bearish, Zhen (Thunder) — Breakout, Xun (Wind) — Slow Rise, Kan (Water) — Breakthrough, Li (Fire) — Inducing Bullish, Gen (Mountain) — Top Formation, Dui (Lake) — Oscillation.
Understand the structure, understand the trend, avoid confusion from clutter.
Nine Palaces · Nine Turns to Judge Exhaustion
The Nine Palaces, based on the mystical Nine Turns TD sequence, judge momentum exhaustion through time series, capture trend reversal windows.
Low position, low 9: bear exhausted, bottom reversal;
High position, high 9: bulls exhausted, top and retreat.
Timing the turning point, resonance signals to act.
Ten Directions · Position Control for Entry and Exit
Ten Directions is the complete capital execution system, a closed-loop of ten actions:
Trial position, light position, entry, add position, reduce position, heavy position, take profit, stop loss, exit, all-in.
Set position size, control risk, manage profit and loss, clarify entry and exit — the foundation of trading implementation.
Summary of the Yi Dao
Zero Extreme returns to the origin, One Yuan stabilizes the mind.
Two Forms divide bulls and bears, Three Talents determine opportunity.
Four Symbols identify strength and weakness, Five Elements cycle through the year.
Six Lines define boundaries, Seven Stars seek turning points.
Eight Trigrams support the trend, Nine Palaces judge exhaustion.
Ten Directions control entry and exit, the Great Dao is passed on forever.
This Dao is newly born, with a promising future, cultivated daily, perfected year after year.
Divided, it forms a system; united, it is called Yi Dao.
May those suffering in the sea of trading understand the source, follow the trend, guard integrity, and walk steadily and far.
Save oneself, also save others.
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