Self-similarity of trends——the first axiom of Chan Theory

Today's Topic: Self-Similarity of Trends—The First Axiom of Chan Theory

The reason Chan Theory is called "the most scientific trading theory" lies in its revelation of a core principle: market trends exhibit self-similarity.

What is self-similarity? Fractals, strokes, segments, pivots, trend types—these seemingly different structural units are actually logically isomorphic. From a single stroke at the smallest level to a trend type at the largest level, the internal construction rules are exactly the same.

As Master Chan said: "Trends are like life; their structure is the same from the smallest to the largest."

A fractal is essentially a localized result of the battle between bulls and bears, a "small war" at a certain level; a trend type is a "campaign" at a larger level. The scale of the battlefield differs, but the logic of war remains the same.

This self-similarity is the theoretical foundation that allows Chan Theory to deduce from the smallest level to the largest. Without understanding self-similarity, you cannot understand level coordination; without understanding level coordination, you cannot achieve precise positioning.

Chan Theory Practical Tips: How to Identify Multi-Level Resonance

Multi-level resonance is one of the most practical signals in Chan Theory. Its essence is: buy/sell points at different levels appear simultaneously, with consistent direction and superimposed strength.

Three key factors for identification:

1. Look at the big to determine the small: First, determine the direction of the larger level. Monthly and weekly charts set the strategy; daily and 60-minute charts set the tactics. When the larger level trend is upward, buy points at smaller levels are worth participating in.
2. Find structural overlapping points: Observe whether the third buy point of the daily-level pivot appears simultaneously at the 30-minute level—that is, whether the 30-minute level is also forming a third buy point. Overlap of structures at two levels indicates resonance.
3. Avoid traps: Multi-level resonance must be structural resonance, not coincidental price alignment. True resonance is the precise interval nesting of pivots across levels, not merely overlapping price numbers.

A rule of thumb: When three or more levels simultaneously show buy/sell point signals, the reliability of that signal is far higher than that of a single-level signal. The large level sets the direction, the medium level sets the rhythm, and the small level sets the entry point.

Market News

1. China-U.S. Economic and Trade Consultations Make New Progress, Both Sides Agree to Establish a Trade Council

At the regular press conference on June 25, Ministry of Commerce spokesperson He Yadong stated that, in line with the consensus reached during China-U.S. economic and trade consultations, both sides have agreed to establish a trade council and will discuss reciprocal tariff reductions and other cooperation under the council. The economic and trade teams of both sides will conduct further consultations on this matter. (Source: Ministry of Commerce website)

2. Apple Announces Mac and iPad Price Hikes Across the Board, With a Maximum Increase of 20%

On June 25, Apple announced price increases for Mac, iPad, and home devices, in response to cost pressures caused by an unprecedented shortage of memory chips and storage due to the expansion of AI data centers. The price adjustment for multiple Mac and iPad products reached 20%. Apple's stock price fell 6% that day, leading the decline in the tech sector. (Source: Cailianshe)

3. National Development and Reform Commission Issues the "15th Five-Year Plan for Building a New Energy System"

The National Development and Reform Commission and the National Energy Administration issued the "15th Five-Year Plan for Building a New Energy System." The plan specifies that by 2030, a clean, low-carbon, safe, and efficient new energy system will be initially established; new west-to-east power transmission capacity will exceed 80 million kilowatts. It also proposes strengthening research on cutting-edge technologies such as controlled nuclear fusion, space power stations, and high-temperature superconducting power transmission. (Source: NDRC official website)

Mind Cultivation Insight: Still Waters Run Deep

In trading, the hardest part is not the technique, but the waiting.

The evolution of trends is like flowing water—sometimes fast, sometimes slow, sometimes rapid, sometimes gentle. The market has its own rhythm, which does not change according to human will. Many traders lose money not because of poor technique, but because of an unstable state of mind—they rush when they should wait, and hesitate when they should act.

Cultivating the mind means cultivating the character of "stillness."

Stillness does not mean inaction, but having a heart like a clear mirror, reflecting the essence of the trend without being disturbed by fluctuations. When you view the market from a high vantage point, without clinging to gains and losses in one city or one battle, without obsessing over temporary ups and downs, trading becomes simple.

In fact, isn't life the same? True wisdom often lies in the seemingly inactive silence.

Meditation cannot be measured; Chan is proven through meditation. Every trade is a practice.