Levels of cryptography in central hub evolution

Today’s Topic: The Construction and Evolution of the Central Zone

The central zone is the core component of the trend structure in Chan theory.

A standard central zone is formed by overlapping intervals of at least three sub-level trend types. This definition may seem simple, but it contains all the secrets of level transitions.

The central zone is not static. It evolves over time and takes on three basic forms:

① Central Zone Extension
The price action repeatedly oscillates within the midpoint interval. Each sub-level fluctuation overlaps within the same range. When the extension reaches more than 9 segments, the central zone level automatically upgrades—this is the first way levels grow.

② Central Zone Expansion
After the price action leaves the central zone interval, the retracement wave’s fluctuations touch the original central zone interval, forming a larger range of overlapping prices. Expansion does not change the direction of the trend, but it will delay the development of the price action.

③ Central Zone Enlargement
After the price action leaves the central zone, the retracement no longer enters the original central zone interval. At this time, the third type of buy/sell point is formed. Central zone enlargement marks the completion of the original trend type, and the new trend structure is about to unfold.

The key to understanding the evolution of the central zone lies in level awareness. The same price area, on a 1-minute chart, may be a central zone; on a 30-minute chart, it might only be a pullback of a single stroke.

Practical Chan Theory Trading Tips: Methods to Judge the Central Zone Level

Many learners get stuck at the threshold of “level.” Below is an actionable judgment process:

Step 1: Determine the analysis level
Clarify the level you are trading (e.g., the 30-minute level), then switch to the sub-level (5 minutes) to observe the details.

Step 2: Identify the sub-level trend types
On the sub-level chart, find the complete trend type(s) (up/down/sideways). Note: It must be a completed trend type; it cannot include any unfinished structure.

Step 3: Confirm the overlapping interval
The overlapping portion of the three sub-level trend types is the central zone interval. Use ZG (central zone high point) and ZD (central zone low point) to mark the boundaries.

Step 4: Observe the evolution state

• If the price action continues to oscillate between ZD and ZG → Central zone extension
• If the retracement touches ZD or ZG → Central zone expansion
• If the retracement does not enter ZD–ZG → The third type of buy/sell point; central zone complete

Key points for real trading:
Don’t try to capture every detail on the lowest level (such as 1 minute). The design logic of Chan theory is recursive—starting from the lowest level, you construct upward step by step. Simply “reading the chart” on a higher-level chart often ignores the level prerequisites, leading to incorrect structure judgments.

Market Information

① Release of Manufacturing PMI Data
The National Bureau of Statistics releases the May Manufacturing Purchasing Managers’ Index (PMI). The data reflects changes in manufacturing business conditions, and the market focuses on the subsequent policy direction.

② Global Major Central Bank Rate-Decision Window
This week, multiple major economies’ central banks enter their rate-decision cycle. The direction of interest-rate policy will affect global liquidity expectations.

Cultivation Insights: Oscillation Is Practice

In the trend, the central zone is “stagnation”; in Zen practice, it is “stillness.”

What traders find hardest is not holding during a trend, but staying put during oscillation. In the central zone extension phase, prices move up and down; the account shows floating gains and floating losses; and the mind follows the fluctuations of the price action—this is the inertia of “knowing.”

Chan theory teaches us to “look at levels,” while Zen practice teaches us to “watch thoughts.” The two are connected: amid uncertain fluctuations, find that unmovable reference point.

The central zone’s ZG and ZD are reference points for price. The clarity of awareness is the reference point for the mind.

Next time your order gets stuck in the central zone, ask yourself: Which level am I looking at? Where is my mind positioned—at which level?

Zen Without Measurement · Confirm Zen Through Chan · 2026.06.07