The trend is perfectly complete, and the level is the key

Today's Topic: Perfect End to the Trend, Level is the Key

One of the core propositions of Chan Theory: The trend ends perfectly.

But many people overlook a prerequisite — the level must be clear.

The same trend structure appears completely different at different levels. At a small level, it looks like a reversal; at a larger level, it’s just a pullback. Level misalignment leads to biased judgments.

What is a level?

A level is the "measure" in Chan Theory.

Without levels, it’s impossible to define the central zone, line segments, or trend types. Levels are like the magnification of a microscope — different magnifications reveal different details.

Operational aspect: First determine the main level you want to operate on, then use subordinate levels as assistance, and higher levels to set the direction.

Practical Skills of Chan Theory: Three Principles for Level Selection

1. Capital Size Determines Level

Small capital can operate on small levels, such as 1-minute or 5-minute charts. Large capital must scale up to higher levels, at least 30 minutes or more.

Levels that are too small lack tolerance for errors; levels that are too large incur high opportunity costs. Tailor to your situation; do not force it.

2. Volatility Attributes Determine Level

Highly volatile assets (like certain cryptocurrencies) use larger levels to filter out noise. Low-volatility assets, smaller levels are enough to catch opportunities.

Chan master once said: Levels are windows to observe the trend; if the window is too large, details are blurry; if too small, you see only trees and miss the forest.

3. Time Cycle Determines Level

Use daily charts to observe the trend, 30-minute charts to find buy points, and 5-minute charts to enter.

This is the level stacking in Chan Theory — observing three levels simultaneously to form a three-dimensional judgment system.

Core principle: Small levels obey large levels, large levels set the direction, small levels find the rhythm.

Market Information

Federal Reserve Interest Rate Decision: Hold steady, dot plot signals rate hike expectations

At the June Federal Reserve meeting, the target range for the federal funds rate was maintained at 3.5%-3.75%, marking the fourth consecutive pause this year. The latest dot plot shows that 9 out of 18 officials expect rate hikes by 2026. After the announcement, the market fully priced in two rate hikes before the end of Q1 2027.

(Source: Public news reports, objective statement)

State Council issues "Implementation Plan for the Employment Priority Strategy during the 14th Five-Year Plan"

The plan clarifies the ideas, goals, and key tasks for deeply implementing the employment priority strategy during the 14th Five-Year period, including nine key tasks such as strengthening macro-control with a focus on employment.

(Source: Public policy documents, objective statement)

Mindfulness Reflection

The difficulty of Chan Theory is not in technique, but in mindset.

Switching levels seems like a change of method, but in fact it’s an upgrade of cognition.

Beginners always want to grasp every fluctuation, frequently switch levels, and finally get lost in the clutter.

True masters select a level and stick to discipline. If you can’t see clearly, wait; once you understand, then act.

The trend ends perfectly only if you first see the level clearly.

Levels are the Dao; techniques are the skills. When Dao and skills unite, the true meaning of Chan is revealed.

Zen without measurement, verified through Chan